2014 (8) TMI 1027

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ubject to further renewal. Clause 5.2 of the Agreement provides that it may be terminated at any time by mutual consent of the parties. Clause 2.1 of the Agreement makes it explicitly clear that it grants the assessee a non-exclusive right to use the trade mark and trade name in the licensed business. The above features deduced from the Agreement amply show that the character of royalty paid by th .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... that the assessee paid, inter alia, royalty of ₹ 8.6 crore to its Associate enterprise M/s G4S Regional Consultancy Services and claimed this amount as revenue expenditure. The AO, after considering certain decisions, came to the conclusion that this amount was to be held as capital expenditure. He, therefore, made addition for this sum. The ld. CIT(A), relying on certain orders passed by t .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... grants the assessee a non-exclusive right to use the trade mark and trade name in the licensed business. The above features deduced from the Agreement amply show that the character of royalty paid by the assessee to its Associated enterprise is nothing, but revenue. The Tribunal in several cases of the assessee s group concerns has held such amount to be revenue in nature. Copies of such orders h .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X