https://www.taxtmi.com/caselaws?id=36441 The court determined that the royalty payment made by a firm under an agreement with the National Research Development Corporation of India for a patented process was a revenue expenditure. The agreement granted a license for 14 years, allowing the firm to use the invention and sell the product, subject to payment of a premium and royalty. The court emphasized that the expenditure's nature should be determined by considering factors such as the purpose of expenditure and surrounding circumstances. Ultimately, the court ruled in favor of the assessee, allowing the royalty payment as revenue expenditure. en-us Wed, 27 Feb 1980 00:00:00 +0530 Mon, 22 Mar 2010 13:24:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36441 The court determined that the royalty payment made by a firm under an agreement with the National Research Development Corporation of India for a patented process was a revenue expenditure. The agreement granted a license for 14 years, allowing the firm to use the invention and sell the product, subject to payment of a premium and royalty. The court emphasized that the expenditure's nature should be determined by considering factors such as the purpose of expenditure and surrounding circumstances. Ultimately, the court ruled in favor of the assessee, allowing the royalty payment as revenue expenditure. Case-Laws Income Tax Wed, 27 Feb 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36441