https://www.taxtmi.com/caselaws?id=6300 Excess royalty payable under a contract was treated as deductible business expenditure because it arose from commercial expediency and did not secure any capital asset or enduring advantage. The recital that the payment was made in lieu of income-tax, super-tax and excess profits tax did not justify disallowance, since no such tax liability existed in the relevant State during the material period. The payment was therefore not hit by the tax-exclusion provision and remained revenue in nature, comparable to minimum royalty. The excess royalty was held deductible in computing business income, and the disallowance was unsustainable. en-us Wed, 25 Aug 1971 00:00:00 +0530 Wed, 03 Dec 2008 23:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6300 Excess royalty payable under a contract was treated as deductible business expenditure because it arose from commercial expediency and did not secure any capital asset or enduring advantage. The recital that the payment was made in lieu of income-tax, super-tax and excess profits tax did not justify disallowance, since no such tax liability existed in the relevant State during the material period. The payment was therefore not hit by the tax-exclusion provision and remained revenue in nature, comparable to minimum royalty. The excess royalty was held deductible in computing business income, and the disallowance was unsustainable. Case-Laws Income Tax Wed, 25 Aug 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6300