2017 (7) TMI 868

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....Mihir C. Naniwadekar for the Respondent ORDER Per Court 1] The present appeal pertains to Assessment Year 2009-10. 2] Mr.Singh, the learned counsel for the Appellant submits that the Tribunal has committed an error in deleting the Royalty and License fees paid by the Assessee to its legal owner as a Revenue expenses without appreciating the totality of the facts. The same is capital in....

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....t of the sum of Rs. 1,39,71,307/made by the assessee under the terms of the agreement entered into with M/s. Kirloskar Proprietary Limited, was an item of revenue expenditure incurred in the course of carrying on the business of the assessee, and thereby allowable u/s.37 of the I.T. Act." 3] According to the learned counsel, the agreement has been misread by the Commissioner (Appeals) and the T....

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....ee to M/s. Kirloskar Proprietary Limited for the use of name. Further, assessee has also entered into a User Agreement with M/s. Kirloskar Proprietary Limited dated 24.11.2006 which was revised on 04.02.2008. In terms thereof the said concern, M/s. Kirloskar Proprietary Limited has admitted assessee as a member and assessee also agreed to maintain the quality and to comply with the specifications ....

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....e Revenue that any enduring benefit has accrued to the assessee which would be in the capital field. Infact, during the currency of the agreement with M/s. Kirloskar Propritary Limited, the benefit which accrues to the assessee is in the revenue field, namely, in the course of carrying on of its business operations and the expenditure incurred in connection thereof would be revenue in nature. Ther....