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Subscription paid towards Brand Equity & Business Promotion was allowable as revenue expense
Case Law Details
- Case Name
- Tata Chemicals Limited Vs DCIT (ITAT Mumbai)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2003-04
- Courts
- All ITAT, ITAT Mumbai
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Tata Chemicals Limited Vs DCIT (ITAT Mumbai)
Conclusion: Addition of sum paid to Tata Sons Limited towards subscription paid for Brand Equity and Business Promotion Agreement was not justified as the said payment was made annually on a recurring basis for business purpose and the same was allowable as a revenue expense.
Held: During the course of assessment proceedings, assessee submitted before AO stating that the Company had entered into an agreement titled “Tata Brand Equity & Business Promotion Agreement” vide which it had to pay 0.25% of its annual profits to M/s Tata Sons Ltd....
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