The assessee claimed that no capital gain was chargeable on...

The assessee claimed that no capital gain was chargeable on receipt from transfer of trademark as there was no cost of acquisition. However, the tribunal held that the assessee had incurred cost for registration of the trademark, making it a capital asset. Therefore, the transfer of trademark was chargeable to tax under the head 'capital gains' as a short-term capital gain. The tribunal rejected the revenue authorities' contention of treating it as business receipt. The tribunal allowed the assessee's claim for deduction of provision for employee leave encashment, following the Supreme Court's decision. It also allowed the assessee's claim for capital loss on surrender of land to DDA, which was earlier disallowed. Regarding the penalty, the tribunal held that merely rejecting the assessee's claims, which were debatable, does not automatically attract penalties.