https://www.taxtmi.com/caselaws?id=396932 Royalty expenditure could not be disallowed under section 40A(2)(b) unless it was shown to be excessive or unreasonable by reference to fair market value, the business need, or the benefit derived. Mere reliance on earlier-year comparison and the fact that the royalty agreement was unregistered was insufficient because the statutory inquiry had to be made for the relevant year against comparable market conditions. On that basis, the royalty disallowance was deleted in favour of the assessee. en-us Thu, 23 Jul 2020 00:00:00 +0530 Sat, 25 Jul 2020 10:17:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=396932 Royalty expenditure could not be disallowed under section 40A(2)(b) unless it was shown to be excessive or unreasonable by reference to fair market value, the business need, or the benefit derived. Mere reliance on earlier-year comparison and the fact that the royalty agreement was unregistered was insufficient because the statutory inquiry had to be made for the relevant year against comparable market conditions. On that basis, the royalty disallowance was deleted in favour of the assessee. Case-Laws Income Tax Thu, 23 Jul 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=396932