2003 (8) TMI 14

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....ppeal is as to whether the brand name in respect of eight items of medicines sold by the assessee for a consideration of Rs. 4 lakhs to M/s. Vysali Pharmaceuticals (P.) Ltd. is exigible to capital gains tax under the Income-tax Act, 1961 (for short "the Act"). The assessee is the appellant. The assessment year is 1992-93, the relevant accounting period ended March 31, 1992. During the accountin....

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.... of the business of the assessee. The Assessing Officer and the two appellate authorities have taken the view that the brand name is definitely a part of the goodwill of the business of the assessee and therefore, it is liable to be assessed to capital gains under section 48 of the Act. Sri P. Balakrishnan, learned counsel appearing for the assessee submits that "brand name" cannot be treated a....

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.... in clause (a) of sub-section (2) of section 55 of the Act and found as a fact that it does. Standing counsel further submitted that none of the authorities including the Tribunal had occasion to consider the effect of the amendment made by the Finance Act, 2001, with effect from April 1, 2002, since all the three orders impugned in this appeal were passed long before such amendment. We have co....

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.... such asset by the assessee by purchase from a previous owner, means the amount of the purchase price ; and (ii) in any other case not being a case falling under sub-clauses (i) to (iv) of sub-section (1) of section 49, shall be taken to be nil'." Admittedly this amendment is having only prospective effect from April 1, 2002. However, the effect of the amendment in relation to the earlier pe....