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2016 (7) TMI 1095 - AT - Income TaxPayment of royalty to USA company - nature of payment - Revenue expenditure or capital expenditure eligible for depreciation @25% - Held that:- CIT(Appeals) as relying on own order for earlier assessment years was well justified in treating the royalty payments made to M/s Chevron Oronite Company LLC USA as nothing but revenue expenditure, not resulting in any acquisition of intangible assets. The assessee could continue to use the technology even after the expiry of the period of payment of royalty. Therefore, when the lump sum royalty was separately agreed and paid, then the running royalty, in the facts and circumstances, would only be a revenue expenditure paid for the use of the licence, trade mark and technical information for a particular period. - Decided in favour of assessee.
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