No addition on account of capitalization of royalty expenses as same is revenue in nature By Anand Gupta TaxGuru

No addition on account of capitalization of royalty expenses as same is revenue in nature Payment of royalty by assessee in lieu of granting license under the royalty and technical knowhow agreement was to be treated as revenue in nature as assessee was already engaged in the manufacturing of motorcycle and Scooter and payment of royalty expenses was not with respect to setting up of manufacturing facility.

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