Dismissing the appeal of the revenue the Court held that , when proprietary concern was converted in to company only, only licence to use Brand name was allowed and the consideration was received was for use of brand name hence provision of S.47A was held to be not applicable . Accordingly the order of Tribunal was affirmed . (AY. 2009 – 10)
PCIT v. Mobisoft Tele Solutions (P) LTD. (P) LTD. (2018) 404 ITR 203 / 163 DTR 289 / 301 CTR 582/90 taxmann. com 383 (P&H) (HC)
S. 47A : Capital gains – Withdrawal of exemption – Conversion of proprietary concern in to company – Only licence to use Brand name – When exemption from capital gain was not claimed -Deletion of addition was held to be justified [ S.47 ]