https://www.taxtmi.com/caselaws?id=180588 ITAT Mumbai held that consideration received by the assessee from its joint owner for surrender of rights in the jointly held trademark was a capital receipt, as the trademark was an intangible asset with no ascertainable cost of acquisition but acquired substantial value over time. The claim for technical know-how fees was remanded to the Assessing Officer to determine whether it improved existing processes (revenue) or created a new line of production (capital). Provision for trade guarantee was allowed as deductible, being based on a consistent and reasonable accounting method. Additional depreciation on specified office-type assets was disallowed, but depreciation on office furniture and assets was permitted notwithstanding non-commencement of factory operations. Bad debts written off were allowed, being based on sound commercial judgment. en-us Wed, 12 Feb 1997 00:00:00 +0530 Tue, 16 Dec 2025 10:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=180588 ITAT Mumbai held that consideration received by the assessee from its joint owner for surrender of rights in the jointly held trademark was a capital receipt, as the trademark was an intangible asset with no ascertainable cost of acquisition but acquired substantial value over time. The claim for technical know-how fees was remanded to the Assessing Officer to determine whether it improved existing processes (revenue) or created a new line of production (capital). Provision for trade guarantee was allowed as deductible, being based on a consistent and reasonable accounting method. Additional depreciation on specified office-type assets was disallowed, but depreciation on office furniture and assets was permitted notwithstanding non-commencement of factory operations. Bad debts written off were allowed, being based on sound commercial judgment. Case-Laws Income Tax Wed, 12 Feb 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=180588