1998 (9) TMI 22

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..... trading and licenses the right to use that name by others, when he effects sale of the business carried on by him in some parts of the country to two private limited companies, transfer by him and, therefore, the consideration obtained for such sale is only in the nature of the licence fee The assessee who was carrying on business in the name and style of "Kappa Electricals" manufacturing elect .....

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..... assessed the income. In appeal, the Appellate Assistant Commissioner agreed with the Income-tax Officer. On further appeal, after a reference to the third Member, in view of the difference of opinion between the two members, the third Member has held in favour of the assessee. The terms of the agreement have been set out in the order of the Tribunal. The agreement provided for sale of all the as .....

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..... essee from using the name in the business that had been carried on by him till the date of the transfer. The transfer, therefore, cannot be held to be a transfer of anything other than goodwill. The goodwill being a self-generating asset is not liable to be taxed at that time as goodwill was not taxable under the law in that year. The amount of Rs. 20,000 could not have been brought to tax. The .....

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