The High Court held that consideration received on transfer of self generated trademarks together with goodwill constituted a capital receipt not eligible to tax, since prior to the amendment of section 55(2)(a) effective 01-04-2002 such intangible assets lacked any ascertainable cost of acquisition, rendering section 45 and section 48 inoperative. The fact that certain trademarks were unregistered did not affect their status as capital assets. Further, compensation received on assignment of marketing rights and know-how, involving extinction of the assessee’s profit-earning tool and relinquishment of an enduring source of income, was held to partake the character of capital receipt. Consequently, the impugned receipts were not chargeable either under ‘capital gains’ or as ‘business income’ under section 28(iv) / section 41(1) of the Act. (AY. 2001-02)