TaxTMI 
TaxTMI 
2018 (5) TMI 1175
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....imited, is a company registered under the Companies Act, 1956 and was in the business of production of mineral water in the trade name "BISLERI". During the period relevant to AY 1994-95, the assessee transferred its trade mark, goodwill, technical knowhow and franchise rights under different agreements in favour of the Coco-cola Company. The trade-mark was transferred for a consideration of Rs. 313.50 lakhs and goodwill for a sum of Rs. 15.67 lakhs. During the course of assessment proceedings, the Assessing Officer in the context of capital gain tax arising out of such transfers, questioned the assessee on the lower valuation of the goodwill, particularly in comparison to the trademark. The assessee mainly raised two contentions. The first....
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....ting the integral part of the business, transfer of trademark with itself transfers not merely an emblem or figure, but also the reputation. Merely because in the present case, the assessee in addition to transferring the trademark, also executed a separate deed transferring the goodwill, would make no difference. The name, figure and emblem and reputation associated with trademark became property of Coca Cola by virtue of trademark agreement and the same would have been the result even if no agreement of transfer of goodwill would have been entered into between the parties. Revenue carried the matter in appeal. The Tribunal confirmed the view of CIT [A], though in somewhat different manner. In this background, while admitting the app....
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....ideration recorded in an agreement between the parties without holding that any sum in excess of amount so declared was paid by the transferee and received by the transferor. In this context, counsel relied on judgment of Division Bench of this Court in case of Commissioner of Income Tax-III vs. Parle International Limited dated 8th August 2016 rendered in Tax Appeal No. 1905 of 2008 and connected appeals. He pointed out that the Tribunal in the present case has relied on the earlier decision of the Tribunal in case of Parle International Limited which was the subject matter of appeal by the Revenue in the said Tax Appeal No. 1905 of 2008. The Court should therefore follow the decision in case of Parle International Limited [Supra]. In t....
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....y method of valuation. Ordinarily therefore, we could not have accepted assessee's blanket proposition that under no circumstances, the Assessing Officer can question declared consideration in an agreement between the transferor and the transferee, particularly when such valuation was not backed by any scientific basis. However, in the present case, we are not inclined to disturb the view of CIT [A] and the Tribunal for the following reasons : Firstly, CIT [A] has given detailed reasons to over-rule the view of Assessing Officer. He noted that the transfer of trademark, emblem, figure and even the reputation of the products of the company stands transferred, leaving very little by way of goodwill. In his opinion, after transfer of the tr....