Case Law Details
Add. CIT Vs Precision Bearing Pvt. Ltd. (ITAT Ahmedabad)
Held that the expenditure incurred on mere registration of trade-mark is a revenue expenditure
Facts-
The assessee filed return declaring a total income of Rs. 5,14,90,540/-. The case was selected under scrutiny and statutory notices were issued. Finally, AO completed assessment u/s 143(3) at a total income of Rs. 7,18,09,430/-. AO disallowed the expenditure of Rs. 7,96,041/- on the registration the of trade-mark of its products in different countries alleging that the expenditure gives the assessee enduring right and therefore it’s a capital expenditure.
CIT(A) allowed the appeal of the assessee. Being aggrieved, the revenue filed an appeal before ITAT.
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