Licence/ Royalty fees to facilitate Trading Operation & Effective Management is Revenue in Nature

Brief of the Case ITAT Delhi held in case of DCIT v Hitz FM Radio India Ltd. that expenditure related to licence fee and royalty which helps merely in facilitating the assessee’s trading operations or enabling the management to be carried more effectively is revenue in nature even if advantage may endure for an indefinite future. If Further held that when the amount is unpaid for three years and the liability exists in accounts then it can’t be said that the liability is finished under Limitation Act due to passing of prescribed time mentioned under the statute. Facts of the Case The asse...