Assessee paid royalty to certain concerns for availing technical know-how and technical expertise and use of brand so owned by provider. It claimed expenditure as revenue expenditure.AO treated the said expenditure as capital expenditure . Tribunal held that, royalty paid for availing technical know-how and technical expertise and use of brand so owned by provider was allowed as revenue expenditure. (AY. 2008 -09)
Bata India Ltd. v. DCIT (2020) 180 ITD 464 (Kol) (Trib.)
S.37(1): Business expenditure -Capital or revenue- Royalty paid for availing technical know-how and technical expertise and use of brand so owned by provider was allowed as revenue expenditure.