Sum paid for use of technical know-how amp; process can’t be treated as capital exp. if only license was granted: ITAT

INCOME TAX : Where assessee-company paid certain amount to its parent company located in Sweden towards royalty for use of technical know-how and technical process of licensor and Assessing Officer disallowed 25 per cent of royalty expenses treating same as capital expenditure, since as per licence agreement assessee had been merely given a license to use licensed information during currency of agreement,INCOME TAX : Where assessee-company paid certain amount to its parent company located in Sweden towards royalty for use of technical know-how and technical process of licensor and Assessing Officer disallowed 25 per cent of royalty expenses treating same as capital expenditure, since as per licence agreement assessee had been merely given a license to use licensed information during currency of agreement,www.taxmann.com Latest Case LawsRead More

Leave a Reply