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2011 (3) TMI 587 - ITAT, DELHICapital or revenue receipt - trade settlement amount - right in Joint Venture - assessee, members of Jain Group and GIPL were carrying on the business of manufacturing writing instruments and stationery through LWIL, in which the GIPL etc. on one hand and members of Jain family and the assessee on the other held equal shares - Held that: The LWIL was now to carry the business under the trade marks (a) Parker; (b) Waterman; (c) Paper Mate and (d) Liquid Paper in place of earlier brand names of Gillette and Parker. The agreement does not speak of any special strengths of the Newell or its management practices. Therefore, it is a case of enrichment of the assessee, which has happened without affecting its capital structure or that of the LWIL. In any case, Newell could withdraw after a short period of two to three years. In these circumstances, it can only be held that the payment was made for any possible loss of future profits. Accordingly, the receipt is in the revenue field. Principal of consistency - assessment in the hands of other assessee regarding same receipt - Held that:- Returns of other assessee have not been scrutinized - the case has not traveled to any higher forum whose decision could be said to be the precedent in the matter. - Decided in favor of revenue.
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