https://www.taxtmi.com/highlights?id=87553 ITAT adjudicated two key tax issues: (1) repairs and maintenance expenditure disallowance was restricted to 10% after reviewing submitted ledger accounts, upholding CIT(A)'s partial disallowance; (2) royalty expenses were deemed revenue expenditure under Section 37, rejecting Revenue's capital expenditure classification. The tribunal referenced precedential case law from Delhi HC, specifically EKL Appliances and Lumax Industries, which established year-to-year license/technical knowledge payments as revenue expenditure. Considering consistent treatment in prior assessment years and absence of ongoing benefit post-agreement termination, ITAT ruled comprehensively in assessee's favor, allowing full royalty expense deduction. en-us Fri, 18 Apr 2025 08:38:17 +0530 Fri, 18 Apr 2025 08:38:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=87553 ITAT adjudicated two key tax issues: (1) repairs and maintenance expenditure disallowance was restricted to 10% after reviewing submitted ledger accounts, upholding CIT(A)'s partial disallowance; (2) royalty expenses were deemed revenue expenditure under Section 37, rejecting Revenue's capital expenditure classification. The tribunal referenced precedential case law from Delhi HC, specifically EKL Appliances and Lumax Industries, which established year-to-year license/technical knowledge payments as revenue expenditure. Considering consistent treatment in prior assessment years and absence of ongoing benefit post-agreement termination, ITAT ruled comprehensively in assessee's favor, allowing full royalty expense deduction. Highlights Income Tax Fri, 18 Apr 2025 08:38:17 +0530 https://www.taxtmi.com/highlights?id=87553