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2017 (7) TMI 868 - HC - Income TaxRoyalty and License fees paid by the Assessee to its legal owner - revenue or capital expenses - Held that:- Assessee pays an amount of ₹ 1 lakh per annum as license or copyright fees to M/s. Kirloskar Proprietary Limited for use of the name. The Assessee is also admitted as a member of M/s. Kirloskar Proprietary Limited and the Assessee has agreed to maintain the quality and to comply with the specifications prescribed by the said concerned. There is no transfer of a technical nohow. The M/s.Kirloskar Proprietary Limited is acknowledged as the original conceiver, adopter, user and registered proprietor of the trademark “Kirloskar”. For allowing the use of the trademark “M/s.Kirloskar Proprietary Limited charges from the Assessee 0.25% on annual turnover as royalty. For the earlier years also i.e. for the Assessment Years 2007-08 and 2008-09, the same is accepted as the revenue expenditure by the Assessing Officer. The finding of fact have been concurrently arrived at by the Commissioner (Appeal) and the Tribunal in a plausible manner.
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