https://www.taxtmi.com/caselaws?id=199315 Annual payments under the patent agreement were treated as revenue receipts because the agreement, read as a whole, did not transfer the patent corpus absolutely for a fixed and ascertained price. The payer received only the use of the patent for an indeterminate period, while the grantor retained property in the patent and further rights under the arrangement. Although the document used the words "licence" and "royalty," the substance was consideration for use of the patent, akin to royalty, not instalments of a capital sale price. The receipts were therefore income, profits and gains and were not exempt under section 4(3)(vii). en-us Tue, 15 Jun 1937 00:00:00 +0530 Mon, 26 Feb 2018 13:06:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=199315 Annual payments under the patent agreement were treated as revenue receipts because the agreement, read as a whole, did not transfer the patent corpus absolutely for a fixed and ascertained price. The payer received only the use of the patent for an indeterminate period, while the grantor retained property in the patent and further rights under the arrangement. Although the document used the words "licence" and "royalty," the substance was consideration for use of the patent, akin to royalty, not instalments of a capital sale price. The receipts were therefore income, profits and gains and were not exempt under section 4(3)(vii). Case-Laws Income Tax Tue, 15 Jun 1937 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=199315