Assesee only can decide whether or not to incur expenditure

Income Tax department cannot dictate Assessee whether or not to incur expenditure. Arm’s length price of royalty expenditure not to be linked with profit/income resulting therefrom. Losses are not a valid ground to disallow royalty expenditure.

HIGH COURT OF DELHI

I.T.A. Nos.1068/2011 & I.T.A. Nos.1070/2011

Date of Decision: 29th March, 2012

CIT VS. EKL APPLIANCES LTD

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