https://www.taxtmi.com/caselaws?id=310318 The ITAT Pune ruled in favor of the assessee, directing the Assessing Officer to treat the royalty expenditure as revenue rather than capital. The decision was based on the linkage of royalty payments to sales turnover and consistent application in previous cases. The ITAT upheld the principle that such payments, related to sales of licensed products, should be considered revenue expenditure. Additionally, issues regarding consistency in the CIT(A)'s decision-making and the disallowance of depreciation on capitalized royalty expenditure were addressed, emphasizing adherence to legal precedents in tax assessments. en-us Mon, 29 Apr 2013 00:00:00 +0530 Wed, 18 Oct 2023 17:00:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=310318 The ITAT Pune ruled in favor of the assessee, directing the Assessing Officer to treat the royalty expenditure as revenue rather than capital. The decision was based on the linkage of royalty payments to sales turnover and consistent application in previous cases. The ITAT upheld the principle that such payments, related to sales of licensed products, should be considered revenue expenditure. Additionally, issues regarding consistency in the CIT(A)'s decision-making and the disallowance of depreciation on capitalized royalty expenditure were addressed, emphasizing adherence to legal precedents in tax assessments. Case-Laws Income Tax Mon, 29 Apr 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=310318