2024 (10) TMI 368 - SCH - Income Tax

Nature of expenses - allowability of the varied license fee - revenue v/s capital expenditure - Recalling the judgment and restoring by de-linking the Civil Appeal 2023 (10) TMI 786 - SUPREME COURT from the batch of Civil Appeal 2023 (10) TMI 786 - SUPREME COURT disposed of by this Court on the question of allowability of the varied license fee as a capital on revenue expenditure wherein the revenue appeals were allowed. HELD THAT - As the allowability of a varied license fee as capital expenditure is concerned, the said issue is covered insofar as this assessee is concerned by the judgment 2023 (10) TMI 786 - SUPREME COURT dated 16.10.2023 referred to above. However, this appeal is detagged from the rest of the appeals disposed of on 16.10.2023 and restored on the file of this Court for the purpose of considering the issue regarding the nature of royalty payment made by the appellant herein. In the circumstances, the Office is directed to de-tag this appeal from the rest of the civil appeals disposed of.

Summary

The Supreme Court allowed the miscellaneous application to recall a judgment and de-link Civil Appeal No.153/2021 from other cases for considering the nature of royalty payment as revenue or capital expenditure. The judgment dated 16.10.2023 finalized the issue of varied license fee as capital expenditure for the appellant. The appeal is restored for considering the royalty payment issue only. Diary No.35868/2024.