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2016 (1) TMI 774 - AT - Income TaxRoyalty payment - revenue expenditure OR capital expenditure - Held that:- A bare perusal of the terms and conditions of Royalty Agreement entered into between the assessee and NMESA WLL goes to prove that the Royalty in the case in question was exclusively for the purpose of use of trademark, trading norms and know how without any acquisition of any capital research in the year under consideration, thus not of any enduring benefit for the assessee so as to consider any part of royalty expenditure as capital expenditure. In the assessee’s own case for the Assessment Year 2005-06 [2011 (7) TMI 65 - DELHI HIGH COURT ] has categorically held that the payment of royalty is revenue expenditure. - Decided against revenue.
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