https://www.taxtmi.com/caselaws?id=797767 Recurring trademark fees paid under a non-exclusive, time-bound licence are allowable as revenue expenditure where the licensor retains exclusive ownership and the user acquires only a limited contractual right to use the mark. Annual fees calculated as a percentage of gross profit, coupled with an obligation to stop using the trademark on termination, do not create proprietary rights, exclusive commercial rights, or an enduring capital asset. The payments are operational expenses deductible under Section 37(1) of the Income-tax Act, 1961. en-us Thu, 13 Aug 2026 00:00:00 +0530 Thu, 27 Aug 2026 08:28:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=797767 Recurring trademark fees paid under a non-exclusive, time-bound licence are allowable as revenue expenditure where the licensor retains exclusive ownership and the user acquires only a limited contractual right to use the mark. Annual fees calculated as a percentage of gross profit, coupled with an obligation to stop using the trademark on termination, do not create proprietary rights, exclusive commercial rights, or an enduring capital asset. The payments are operational expenses deductible under Section 37(1) of the Income-tax Act, 1961. Case-Laws Income Tax Thu, 13 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=797767