https://www.taxtmi.com/caselaws?id=338426 The High Court upheld the Tribunal's decision, confirming that the royalty payment of Rs. 18,20,277 was considered revenue expenditure. The Court emphasized that the payment for technical know-how did not confer any enduring benefit to the assessee, as the agreement required the return of materials after five years. The Court found the payment essential for business operations, directly related to sales, and aligned with precedents holding such payments as revenue expenditures. Consequently, the Court dismissed the Revenue's appeal, ruling in favor of the assessee and awarding costs. en-us Mon, 09 Jan 2017 00:00:00 +0530 Fri, 27 Jul 2018 16:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=338426 The High Court upheld the Tribunal's decision, confirming that the royalty payment of Rs. 18,20,277 was considered revenue expenditure. The Court emphasized that the payment for technical know-how did not confer any enduring benefit to the assessee, as the agreement required the return of materials after five years. The Court found the payment essential for business operations, directly related to sales, and aligned with precedents holding such payments as revenue expenditures. Consequently, the Court dismissed the Revenue's appeal, ruling in favor of the assessee and awarding costs. Case-Laws Income Tax Mon, 09 Jan 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=338426