https://www.taxtmi.com/caselaws?id=431974 Retention of ownership in trademarks and brand names, coupled with only restricted, conditional and revocable user rights, means the consideration is royalty and not capital gains. The agreement preserved the proprietor's title; the licensee received use rights subject to brand-book conditions, territorial limits, non-assignment restrictions and termination on breach, so there was no sale, exchange, relinquishment or extinguishment of ownership rights. The payment therefore fell within royalty under section 9(1)(vi) of the Income-tax Act and Article 12(3) of the India-Turkey tax treaty. Separate claims on treaty rate and set-off of royalty income against long-term capital loss were not examined and were remitted for fresh consideration. en-us Thu, 22 Dec 2022 00:00:00 +0530 Mon, 10 Jun 2024 17:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=431974 Retention of ownership in trademarks and brand names, coupled with only restricted, conditional and revocable user rights, means the consideration is royalty and not capital gains. The agreement preserved the proprietor's title; the licensee received use rights subject to brand-book conditions, territorial limits, non-assignment restrictions and termination on breach, so there was no sale, exchange, relinquishment or extinguishment of ownership rights. The payment therefore fell within royalty under section 9(1)(vi) of the Income-tax Act and Article 12(3) of the India-Turkey tax treaty. Separate claims on treaty rate and set-off of royalty income against long-term capital loss were not examined and were remitted for fresh consideration. Case-Laws Income Tax Thu, 22 Dec 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=431974