https://www.taxtmi.com/caselaws?id=204608 HC held that royalty paid by Assessee to foreign collaborator for use of trademark and technical knowhow was revenue expenditure allowable under Section 37(1) of the IT Act. Under the sub-licence, rights in the trademark and knowhow always vested in the foreign entity; Assessee only obtained a limited, non-exclusive right to use them for a specified period, on payment of 1% of net sales, and was required to return all knowhow and cease use of the mark on termination. As no enduring asset or ownership right accrued to Assessee, the expenditure was not capital. Revenue's appeals were dismissed. en-us Mon, 11 Jul 2011 00:00:00 +0530 Mon, 01 Dec 2025 11:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=204608 HC held that royalty paid by Assessee to foreign collaborator for use of trademark and technical knowhow was revenue expenditure allowable under Section 37(1) of the IT Act. Under the sub-licence, rights in the trademark and knowhow always vested in the foreign entity; Assessee only obtained a limited, non-exclusive right to use them for a specified period, on payment of 1% of net sales, and was required to return all knowhow and cease use of the mark on termination. As no enduring asset or ownership right accrued to Assessee, the expenditure was not capital. Revenue's appeals were dismissed. Case-Laws Income Tax Mon, 11 Jul 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=204608