TaxTMI 
TaxTMI 
1981 (6) TMI 92
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....its business will be affected and sought permanent injunction against M/s. Premier Fertilizers Ltd. from carrying on business in that name for the reason that the use of the name is "likely to mistake or deceive the public into the belief that the "defendants" company is the same as that of the "plaintiff" Premier Fertilizer Concern. The assessee succeeded before the Sixth Assistant Judge, in the City Civil Court in the suit, which raised th following four issues: 1. Have the plaintiffs acquired any right over the name Premier Fertilizers? 2. Are the plaintiffs manufacturing any fertilizer or marketing in the name of "Premier Fertilizers? 3. Had the defendants any knowledge of the plaintiffs name when the defendant company was regi....
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....s Ltd., concurrently with the Respondents (plaintiffs) continuing to use their name and style of Premier Fertilizers in connection with their business. 2. That both the Appellants (defendants) and Respondents (Plaintiffs) shall however be at liberty to take proceedings and should any third party adopt the name and style of Premier Fertilizers or any imitations thereof; and 3. That each party do bear his costs in this court". The Assessee had, therefore, received Rs. 25,000 from M/s. Premier Fertilizers. Ltd. on or near about 29th April, 1967, the date of memo of compromise. It is this amount, which is the subject matter of the present dispute in the assessment for asst. yr. 1968-69. 2. On the above facts, the ITO treated the receip....
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....ld require due consideration. How the sum of Rs. 25,500 was arrived at would also have a bearing. It would also have to be seen whether it is a lumpsum paid in consideration of the loss of further income or whether it is an ad hoc amount unrelated to any variation of turnover or income. As the Tribunal has not addressed itself to all the facts and aspects as to how the amount was arrived at and what was the object with which the settlement was effected, and as we consider all these aspects to be relevant, in the absence of a consideration of all the facts, and aspects we do not find it possible to this question. We, therefore, return the reference unanswered and the Tribunal will have to dispose of the appeal by going into all the facts and....
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....hat the compensation was for anything other than the trade name. The compromise is not inconsistent with the order of the lower authorities. A permanent injunction was vacated for an agreed consideration. The assessee opted for a remedy by way of compensation in lieu of the injunction granted by the lower counts. Hence, the findings of facts do not get displaced because of the compromise at the High Court level. As for the manner in which the amount was arrived at, it was merely a matter of bargain between the lawyers representing both the parties. He claimed in ability to indicate the manner in which sum of Rs. 25,5000 was arrived at. The ld. Deptl. Rep. claimed that the assessee's failure to indicate the manner of computation of Rs. 25,50....
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.... Premier Fertilizers' Ltd., by marketing fertilizers in the same name had violated the assessee's rights, though they had done it unknowingly. These facts have been found by the two lower courts and the compromise decree only substitutes a monetary compensation in the place of permanent injunction. These facts have also not been disputed in the orders of the authorities below. As to the manner of computation or Rs. 25,500, we have to accept that it is a matter of bargain. At the same time, we have no reason to reject the representation of the Dept. Rep. that this amount would have been arrived at with reference to the damages suffered by the assessee. It is also not impossible to accept his further argument that such damages might have been....