ITAT Delhi Deletes Disallowance of Royalty Expenses Applying Consistency Principle

Travel Food Services Delhi Terminal 3 Pvt. Ltd. Vs ACIT (ITAT Delhi) The Income Tax Appellate Tribunal (ITAT) in Delhi has ruled in favor of Travel Food Services Delhi Terminal 3 Pvt. Ltd., deleting a ₹17.95 lakh disallowance on royalty expenses for the assessment year 2017-18. The company, which operates food and beverage outlets at Delhi’s Indira Gandhi International Airport, had its return of income scrutinized by the Assessing Officer (AO). The AO disallowed 25% of the royalty charges, citing a Supreme Court judgment in the case of Southern Switchgear Ltd. vs CIT. The CIT(A) had up...