License fee paid for use of goodwill is allowable as business expense

PCIT Vs Remfry And Sagar (Delhi High Court)

Delhi High Court held that license fees paid for use of goodwill is allowable as business expenditure. Accordingly, the same is deductible under section 37 of the Income Tax Act. Thus, appeal of revenue dismissed.

Facts- The present appeal has been preferred by the revenue mainly contesting that ITAT fall into error in allowing the license fee paid to M/s. Remfry & Sagar for use of goodwill by the assessee, having regard to the provisions in the Bar Council Rules and the Advocate’s Act, 1961. Further, IT

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