Royalty payment to holding company for using brand name is revenue expenditure

ACIT Vs CRI Pumps Pvt. Ltd (ITAT Chennai)

ITAT Chennai held that amount of royalty payment to holding company for using brand name is allowable as revenue expenditure.

Facts- The assessee company has paid Rs. 4,12,50,564/- as royalty to M/s. CRI Amalgamations Pvt Ltd, the holding company for using the trade mark ‘CRI’. The assessee claims before the AO that, it is using trade mark CRI for more than three decades and said trade mark was originally with M/s. CRI Amalgama

Please become a Premium member. If you are already a Premium member, login here to access the full content.