CIT v. Shriram City Union Finance Ltd. (2024)460 ITR 232/161 taxmann.com 218 (Mad)(HC)

S. 37(1) : Business expenditure-Capital or revenue Royalty for use of logo of company-Expenses on employees stock option plan-Revenue expenditure.[Companies Act, 1956,2(15A) 2((37)]

Tribunal held that the royalty paid by the assessee towards the use of logo of a company  was to be treated as revenue expenditure and the expenditure incurred on employees’ stock option plan was allowable as revenue expenditure. High Court affirmed the order of the Tribunal. (AY.2010-11, 2011-12)