https://www.taxtmi.com/caselaws?id=7261 Royalty earned under licensing arrangements for the use of technical know-how, patents, secret processes and allied commercial assets was treated as business income where the assessee retained control, restricted disclosure and continued to exploit those assets in its business. The receipt was characterised as a trading receipt rather than consideration for disposal of a capital asset, because the assessee merely allowed use of the assets and did not part with them. On that basis, the royalty was eligible to be set off against carried-forward business losses under section 24(2). en-us Fri, 01 Mar 1968 00:00:00 +0530 Mon, 16 Feb 2009 12:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7261 Royalty earned under licensing arrangements for the use of technical know-how, patents, secret processes and allied commercial assets was treated as business income where the assessee retained control, restricted disclosure and continued to exploit those assets in its business. The receipt was characterised as a trading receipt rather than consideration for disposal of a capital asset, because the assessee merely allowed use of the assets and did not part with them. On that basis, the royalty was eligible to be set off against carried-forward business losses under section 24(2). Case-Laws Income Tax Fri, 01 Mar 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7261