https://www.taxtmi.com/caselaws?id=27709 The court held that the royalty payment of Rs. 1,44,556 was a revenue expenditure, not a capital expenditure, as it was related to turnover and not to any fixed capital sum. Citing precedent, the court emphasized that payments tied to annual profits and not fixed sums are typically classified as revenue expenditures. The decision favored the assessee, directing the Revenue to bear the costs of the reference. en-us Tue, 04 Oct 1983 00:00:00 +0530 Mon, 15 Feb 2010 15:26:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27709 The court held that the royalty payment of Rs. 1,44,556 was a revenue expenditure, not a capital expenditure, as it was related to turnover and not to any fixed capital sum. Citing precedent, the court emphasized that payments tied to annual profits and not fixed sums are typically classified as revenue expenditures. The decision favored the assessee, directing the Revenue to bear the costs of the reference. Case-Laws Income Tax Tue, 04 Oct 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27709