https://www.taxtmi.com/caselaws?id=22381 HC held that royalty and technical fees paid by the assessee to foreign concerns constituted revenue expenditure, allowable under income-tax law. The court emphasized that although the assessee would acquire rights in the know-how after 12 years, the information could by then be obsolete, negating any enduring capital advantage. It also noted consistency in prior assessments where such payments had been allowed, requiring substantial justification for a contrary view, which was absent. Further, commission and brokerage paid to agents, being directly linked to actual sales, were characterized as selling expenses and not "advertisement, publicity and sales promotion" under section 37(3A), and hence were fully deductible. en-us Fri, 23 Feb 1990 00:00:00 +0530 Thu, 04 Dec 2025 16:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=22381 HC held that royalty and technical fees paid by the assessee to foreign concerns constituted revenue expenditure, allowable under income-tax law. The court emphasized that although the assessee would acquire rights in the know-how after 12 years, the information could by then be obsolete, negating any enduring capital advantage. It also noted consistency in prior assessments where such payments had been allowed, requiring substantial justification for a contrary view, which was absent. Further, commission and brokerage paid to agents, being directly linked to actual sales, were characterized as selling expenses and not "advertisement, publicity and sales promotion" under section 37(3A), and hence were fully deductible. Case-Laws Income Tax Fri, 23 Feb 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=22381