https://www.taxtmi.com/caselaws?id=237178 Amounts received for technology, know-how and trademark under the agreement were characterised as royalty, not capital gains, because the arrangement did not transfer proprietary rights in the underlying assets. Read as a whole, the agreement imposed material restrictions on use, confidentiality, third-party transfer and territorial exploitation, while the trademark remained the assessee's exclusive property and the RBI approval was time-limited. On that basis, there was no transfer of a capital asset under the Income-tax Act, and the consideration fell within Article 12 of the India-Germany DTAA as royalty. The receipts were therefore taxable in India under both the Act and the treaty. en-us Fri, 13 Sep 2013 00:00:00 +0530 Fri, 20 Sep 2013 09:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=237178 Amounts received for technology, know-how and trademark under the agreement were characterised as royalty, not capital gains, because the arrangement did not transfer proprietary rights in the underlying assets. Read as a whole, the agreement imposed material restrictions on use, confidentiality, third-party transfer and territorial exploitation, while the trademark remained the assessee's exclusive property and the RBI approval was time-limited. On that basis, there was no transfer of a capital asset under the Income-tax Act, and the consideration fell within Article 12 of the India-Germany DTAA as royalty. The receipts were therefore taxable in India under both the Act and the treaty. Case-Laws Income Tax Fri, 13 Sep 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=237178