R. JAYASIMHA BABU, J.

The question raised at the instance of the Revenue which question arises out of the assessment of the income of the respondent-assessee for the asst. yr. 1962-63 is as to whether on the facts and in the circumstances of the case, and having regard to the terms of the agreement dated 15th December, 1961, the Tribunal was right in holding that the receipt of Rs. 50, 000 by the assessee-company for the use of the licence and trade mark 'Miller' by the Indian company was a capital receipt, and therefore, not taxable in the assessee's hands ?

2. The assessee is a foreign company which entered into agreements with Tube Investments Ltd. and later with T. I. Miller Ltd., Madras. These agreements were entered into in the year 1961. Under the agreement between the assessee and Tube Investment Ltd., it was provided that the assessee would receive a sum of Rs. 50, 000 from the company to be incorporated in the form of equity shares of that company as consideration for allowing that company as exclusive licence to use the trade mark 'Miller' over its products. The agreement also provided that the new company was not to use any mark other than the mark Miller. The