Royalty Payment for Trademark Use Classified as Revenue Expenditure, Not Capital, Due to No New Asset Acquisition.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Nature of expenses - payment of royalty - revenue or capital expenditure - Permission to user the name and Trade Mark - Royalty is payable on the basis of Annual Sales Turnover - No new asset was acquired by the assessee. The assessee merely acted as user. - CIT(A) rightly allowed the same as revenue expenditure - AT....