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2012 (2) TMI 354 - HC - Income TaxBusiness expenditure – Royalty payment – Trademark - Capital vs Revenue expenditure – dis-allowance of doubtful debts/allowances – Held that:- CIT(A) observed that payment was for use of technology and technical information. Assessee had not secured any exclusive privilege to either manufacture or sell the products. No benefit or right accrued in perpetuity and was for prescribed period thus payment was not for acquisition of any capital asset (trade mark) but was revenue expenditure. Aforesaid view of CIT(A) & Tribunal is upheld. See CIT vs G4S. Securities System (India) (P) Limited (2011 - TMI - 204608 - Delhi High Court) Doubtful debts/allowances - The said claim was admissible u/s 37 r.w.s. 28 of the Act – Decided against the Revenue.
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