https://www.taxtmi.com/caselaws?id=310362 The Tribunal dismissed the Revenue's appeal, affirming the Commissioner of Income Tax (Appeals)'s decisions. It held that the royalty payment made by the assessee to Carraro SpA, Italy, was revenue expenditure, as it was tied to net sales turnover and not a lump-sum payment, providing no enduring advantage. Additionally, the Tribunal upheld the amortization of loose tools, emphasizing consistency in accounting practices since the tools, although with vendors, were used exclusively for the assessee's business. The Tribunal found no merit in the Revenue's objections on both issues. en-us Fri, 28 Oct 2016 00:00:00 +0530 Fri, 20 Oct 2023 10:16:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=310362 The Tribunal dismissed the Revenue's appeal, affirming the Commissioner of Income Tax (Appeals)'s decisions. It held that the royalty payment made by the assessee to Carraro SpA, Italy, was revenue expenditure, as it was tied to net sales turnover and not a lump-sum payment, providing no enduring advantage. Additionally, the Tribunal upheld the amortization of loose tools, emphasizing consistency in accounting practices since the tools, although with vendors, were used exclusively for the assessee's business. The Tribunal found no merit in the Revenue's objections on both issues. Case-Laws Income Tax Fri, 28 Oct 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=310362