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2012 (6) TMI 626 - ANDHRA PRADESH HIGH COURTRoyalty payment - in the nature of revenue expenditure or capital expenditure - Held that:- Considering the terms of the Technical Assistance Agreement entered between the assessee and MMB entitlement to use the know-how supplied by MMB for the manufacture of the products. The know-how and information received by the assessee directly or indirectly was to be kept strictly confidential and was entitled to use the trade mark "Golden Eagle" of MMB. The payment of royalty was, therefore, in the nature of expenditure incurred for carrying on business with available know-how rather than for accretion to the capital base or gain an advantage in the capital field of the assessee - in favour of assessee.
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