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TMI Blog2003 (8) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... ) Ltd. is exigible to capital gains tax – effect of the amendment to clause (a) of sub-section (2) of section 55 - Admittedly this amendment is having only prospective effect from April 1, 2002. However, the effect of the amendment in relation to the earlier period is necessarily a matter to be considered by the Tribunal while determining the question as to whether brand name associated with a bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. for a consideration of Rs. 4 lakhs. The Assessing Officer wanted to assess the said amount to tax by resorting to the provisions of section 55(2) of the Act. The said provisions, as it stood at the relevant time, provided that for the purpose of sections 48 and 49 "cost of acquisition" in relation to a capital asset, being goodwill of a business, in the case of such acquisition by the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion (2) of section 55 by the Finance Act, 2001 with effect from April 1, 2002, and submitted that this amendment also is indicative of the fact that goodwill did not take in trade mark or brand name associated with a business. Counsel further pointed out that factually also the purchaser of the brand name has suffered loss only by dealing with the brand name purchased from the assessee. Sri Geor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause (a) of sub-section (2) of section 55 of the Act since it was effected only by the Finance Act, 2001 long after the said orders. The amended provisions of clause (a) of sub-section (2) of section 55 reads as follows: "55. (2) For the purposes of sections 48 and 49, 'cost of acquisition',- (a) in relation to a capital asset, being goodwill of a business or a trade mark or brand name associate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o put it differently, does the amendment indicate that for the earlier period the name or brand name associated with a business was included in the expression "goodwill" of a business or not? This is a matter, according to us, which requires consideration. For the said purpose we set aside the order of the Tribunal and remit the matter to the Tribunal for passing fresh orders in accordance with la ..... X X X X Extracts X X X X X X X X Extracts X X X X
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