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TMI Blog2018 (6) TMI 1548X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacture and sell the relevant industrial products in India to two its subsidiaries. These subsidiaries sought the assistance of the assessee in this case to ensure that RPG Raychem Limited did not continue rival business in the same industrial products in India. Accordingly, an agreement was entered into by the relevant subsidiaries of Tyco, USA under which the assessee was to vote in a particular manner at a general meeting of RPG Raychem Limited such that Tyco's specialised business was no longer carried on in India by RPG Raychem Limited. In consideration for voting in the manner agreed, Tyco, Dubai paid certain sums to the assessee and the treatment of such sums fell for consideration before the Assessing Officer and, subsequently, bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... particular manner would be a capital receipt or a revenue receipt. The Commissioner (Appeals) disagreed with the submissions of the assessee that the income had to be treated as a capital receipt since it was one-time in nature and not a recurring source of income. The Appellate Tribunal relied on a judgment of the Bombay High Court to hold that the Commissioner (Appeals) had erred and the income had to be treated as a capital receipt. 2. In the Bombay case, the matter pertained to the relinquishment by the assessee of the right to use brand 'Old Spice'. The original owner of Old Spice, Shulton, U.K. had an agreement under which the brand was promoted in India by the assessee. Shulton or the Old Spice brand worldwide was acquired ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... RPG Raychem Limited did not continue rival business in the same industrial products in India. Accordingly, an agreement was entered into by the relevant subsidiaries of Tyco, USA under which the assessee was to vote in a particular manner at a general meeting of RPG Raychem Limited such that Tyco's specialised business was no longer carried on in India by RPG Raychem Limited. In consideration for voting in the manner agreed, Tyco, Dubai paid certain sums to the assessee and the treatment of such sums fell for consideration before the Assessing Officer and, subsequently, before the Commissioner (Appeals). 4. Though the Commissioner (Appeals) did not accept the assessee's contention that this was a one-off payment, it could not be s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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