https://www.taxtmi.com/caselaws?id=313192 Telangana HC addressed three income-tax issues arising from chit fund business. It held that unrecovered amounts from defaulting subscribers may be treated as bad debts when written off in the books under the statutory framework and binding CBDT instructions, though quantification required factual verification. It further held that royalty paid for use of a trade name and logo was revenue expenditure because no enduring capital asset or ownership in the intellectual property passed to the assessee. It also held that commission linked to substituted defaulting chits accrued only on final settlement of the defaulting subscriber's account. The Revenue's appeals were dismissed and the assessee succeeded on all issues. en-us Fri, 09 Jun 2023 00:00:00 +0530 Fri, 29 Mar 2024 15:23:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=313192 Telangana HC addressed three income-tax issues arising from chit fund business. It held that unrecovered amounts from defaulting subscribers may be treated as bad debts when written off in the books under the statutory framework and binding CBDT instructions, though quantification required factual verification. It further held that royalty paid for use of a trade name and logo was revenue expenditure because no enduring capital asset or ownership in the intellectual property passed to the assessee. It also held that commission linked to substituted defaulting chits accrued only on final settlement of the defaulting subscriber's account. The Revenue's appeals were dismissed and the assessee succeeded on all issues. Case-Laws Income Tax Fri, 09 Jun 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=313192