https://www.taxtmi.com/caselaws?id=36955 The court held that the royalty payments made by the assessee to its foreign collaborators were deductible as revenue expenditure under section 37 of the Income-tax Act, 1961. The payments were considered directly related to the manufacturing process and profit-making activities, necessary for running the business, and not for acquiring a new asset or enduring benefit. The court distinguished the case from previous decisions and concluded in favor of the assessee, allowing the deductions for the sums paid as royalties. en-us Mon, 19 Nov 1979 00:00:00 +0530 Thu, 25 Mar 2010 15:51:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36955 The court held that the royalty payments made by the assessee to its foreign collaborators were deductible as revenue expenditure under section 37 of the Income-tax Act, 1961. The payments were considered directly related to the manufacturing process and profit-making activities, necessary for running the business, and not for acquiring a new asset or enduring benefit. The court distinguished the case from previous decisions and concluded in favor of the assessee, allowing the deductions for the sums paid as royalties. Case-Laws Income Tax Mon, 19 Nov 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36955