https://www.taxtmi.com/caselaws?id=797595 Outright assignment of trademark ownership for lump-sum consideration constitutes acquisition of a capital asset, not royalty for use of intellectual-property rights. Where the transferor's ownership, the rights assigned, commercial terms and tax residency are supported by the agreement and related materials, the remittance is not chargeable to tax in India as royalty. Tax withholding on foreign remittances applies only where the payment is chargeable to tax in India; consequently, no tax-deduction obligation arises and the payer cannot be treated as an assessee in default. The related demand for tax and interest is deleted. en-us Tue, 18 Aug 2026 00:00:00 +0530 Tue, 25 Aug 2026 08:34:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=797595 Outright assignment of trademark ownership for lump-sum consideration constitutes acquisition of a capital asset, not royalty for use of intellectual-property rights. Where the transferor's ownership, the rights assigned, commercial terms and tax residency are supported by the agreement and related materials, the remittance is not chargeable to tax in India as royalty. Tax withholding on foreign remittances applies only where the payment is chargeable to tax in India; consequently, no tax-deduction obligation arises and the payer cannot be treated as an assessee in default. The related demand for tax and interest is deleted. Case-Laws Income Tax Tue, 18 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=797595