https://www.taxtmi.com/caselaws?id=263995 The Court upheld the Income Tax Appellate Tribunal's decision in favor of the Assessee, allowing the deduction of royalty expenses incurred for business purposes. The Tribunal's interpretation of the royalty agreements as genuine and linked to sales was deemed reasonable, dismissing claims of the agreements being sham. The Court found no basis to disallow the royalty payments, rejecting the Assessing Officer and Commissioner of Income Tax (Appeals)' suspicions and enhancements of disallowance amounts. The Assessee's compliance with tax deductions and the absence of any questionable relationship with the foreign company supported the Court's decision to dismiss the appeals. en-us Fri, 04 Sep 2015 00:00:00 +0530 Tue, 15 Sep 2015 07:15:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=263995 The Court upheld the Income Tax Appellate Tribunal's decision in favor of the Assessee, allowing the deduction of royalty expenses incurred for business purposes. The Tribunal's interpretation of the royalty agreements as genuine and linked to sales was deemed reasonable, dismissing claims of the agreements being sham. The Court found no basis to disallow the royalty payments, rejecting the Assessing Officer and Commissioner of Income Tax (Appeals)' suspicions and enhancements of disallowance amounts. The Assessee's compliance with tax deductions and the absence of any questionable relationship with the foreign company supported the Court's decision to dismiss the appeals. Case-Laws Income Tax Fri, 04 Sep 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=263995