License Fees for Goodwill acquisition Allowed as Expense U/S 37: Delhi HC

PCIT -21 Vs Remfry & Sagar (Delhi High Court) Delhi High Court held that license fees paid to M/s. Remfry & Sagar for use goodwill vested in the company is allowable as deduction under section 37 of the Income Tax Act. Accordingly, appeal of the revenue dismissed. Facts- A sole proprietorship came to be established in 1827 under the name of „Grant & Remfry‟ by a British immigrant, Mr. Henry Oliver Remfry. That sole proprietorship was subsequently converted into a partnership firm and was operated by five generations of the Remfry family upto the year 1957. In that year, four pa...