Royalty on Logo Allowed; Disallowance Without Examining Business Purpose Invalid: ITAT Delhi

Advertisement Amrit Banaspati Company Pvt. Ltd. Vs DCIT (ITAT Delhi) The case involves cross appeals filed by both the assessee and the Revenue for Assessment Years 2010–11, 2011–12, and 2012–13 against orders of the Commissioner of Income Tax (Appeals) passed under sections 143(3)/153A of the Income Tax Act. At the outset, the assessee did not press its ground challenging the validity of the assessment order, and the same was dismissed as not pressed. The primary issue in the assessee’s appeal related to disallowance of royalty payment amounting to Rs. 44.60 lakh on the use of a �...