TMI Blog1982 (10) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... .T. Act,1961, the Income-tax Appellate Tribunal, Indore Bench, Indore (for short " the Tribunal "), has referred the following question of law for the opinion of this court : " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the sum of Rs. 25,001 paid to M/s. M. B. Umbrella Factory for the exploitation of trade mark was a revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, held that it was a case of sale of goodwill and the benefit of the agreement was of enduring nature and, therefore, the expenditure in question was not of revenue nature but of capital nature. The ITO, therefore, added the sum of Rs. 25,001 towards the total income of the assessee. On appeal by the assessee the Commissioner of Income-tax (Appeals) held that the trade mark had not been sold by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the aforesaid question of law for the opinion of this court. In CIT v. Ciba of India Ltd. [1968] 69 ITR 692 the Supreme Court held that where the assessee did not under the agreement become entitled exclusively even for the period of the agreement to the patents and trade marks of the Swiss company and it had merely access to the technical knowledge and experience in the pharmaceutical fiel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment. It is found as a fact that the assessee was merely granted a licence to use the trade mark " TANK " for a period of five years on payment of licence fee determined on the basis of a formula laid down in the agreement. It has further been held that the payment made by the assessee to M/s. M. B. Umbrella Factory was in the nature of royalty on trade mark used by it or in other words the paymen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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