2015 (1) TMI 240

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..... y - Clause 6.2 makes it abundantly clear that no proprietary interest shall be transferred to the assessee in respect of the files, lists, records, documents, drawings, specifications and other technical information which was furnished to the assessee by the licensor - it cannot be said that the assessee got any enduring benefit in the agreement which is a condition precedent for treating the payment as capital expenditure – thus, the Tribunal passed the order and held the entire amount as revenue expenditure – Decided against revenue. - INCOME TAX APPEAL NO.3 OF 2009 - - - Dated:- 28-10-2014 - MR. N.KUMAR AND MR. B.MANOHAR, JJ. FOR THE APPELLANT : SRI.K.V.ARAVIND, ADV. FOR THE RESPONDENT : SRI. V.K.GURUNATHAN AND JINITA CHATTE .....

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..... of Income Tax reported in 232 ITR 359 and the judgment of the Madras High Court in the case reported in 148 ITR 272 held that 25% of the royalty expenses constitutes capital expenditure as it gives rise to the assessee a benefit which is of enduring nature and thereby, constituting a capital asset. Aggrieved by the same, the assessee preferred an appeal to the Commissioner of Income Tax. 4. The Appellate Authority held that the judgment of the Apex Court referred to supra has no application to the present case of the assessee. The revenue has accepted the claim of the assessee of royalty as revenue expenditure in the preceding years. When there is no change in the facts and circumstances of the case, one should not be allowed to change .....

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..... otherwise not later than 90 days before the expiration of the then current term. 7.2: Termination. Either party may terminate this Agreement, with or without cause, upon 90 days prior written notice given to the other party. This Agreement may be terminated by Licensor at any time by written notice of termination, effective on the date such notice is received, after the occurrence of any of the following events: (a) Any breach of Licensee s obligations under Articles VI or VII of this Agreement; (b) Upon the insolvency or bankruptcy of Licensee, the inability of License to pay its debts as they fall due or upon the appointment of a trustee or receiver or the equivalent for Licensee, or upon the institution of p .....

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