https://www.taxtmi.com/caselaws?id=456649 ITAT Pune held that deduction under section 35AB, once allowed in the initial year of lump-sum consideration payment, must be automatically allowed in succeeding five years without re-examining admissibility. The matter was remanded to AO for verification. The tribunal upheld that running royalty at 2.75% of vehicle sales constitutes revenue expenditure, not capital. Ad-hoc disallowances of miscellaneous expenses and 10% traveling expenses were rejected due to lack of evidence. Prior period expenses and sales tax write-offs were allowed based on proper crystallization during the relevant assessment year. en-us Thu, 23 Dec 2021 00:00:00 +0530 Wed, 07 Aug 2024 20:37:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=456649 ITAT Pune held that deduction under section 35AB, once allowed in the initial year of lump-sum consideration payment, must be automatically allowed in succeeding five years without re-examining admissibility. The matter was remanded to AO for verification. The tribunal upheld that running royalty at 2.75% of vehicle sales constitutes revenue expenditure, not capital. Ad-hoc disallowances of miscellaneous expenses and 10% traveling expenses were rejected due to lack of evidence. Prior period expenses and sales tax write-offs were allowed based on proper crystallization during the relevant assessment year. Case-Laws Income Tax Thu, 23 Dec 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=456649