Royalty paid for Licence to Manufacturing/Sale & Technical Know-How having enduring benefit is Capital Expense

Telco Construction Co. Ltd. Vs ACIT (Karnataka High Court)  Thus, from perusal of the relevant clauses of the agreement, it is clear that the assessee is a joint venture company and under the agreement has been granted non transferable licence to manufacture / assemble the Hitachi licence products within the territory using technical know-how furnished by Hitachi and to sell otherwise dispose of the Hitachi licence products. The products shall be sold only under the trade / brand name of Tata Hitachi. It is also pertinent to note that even expiry of the 11 years from the date of commercial pr...