COMMISSIONER OF INCOME TAX Vs. REDSON TECHNOLOGIES LTD.

JUDGEMENT

(1.) Delay in refilling the appeal is condoned. C.M. is disposed of.

(2.) In the present case, we find in the agreement entered into between the assessee and M/s. Mas Services (P.) Ltd. that the said company allowed the assessee to use its goodwill only for a period of two year. For these two years, the assessee paid the money to the said company for use of the goodwill. In these circumstances, relying upon the judgment of Madhya Pradesh High Court in the case of CIT v/s. M.B. Umbrella Industries : [1984] 145 ITR 292 the I.T.A.T. has rightly held the that payment made for use of the aforesaid goodwill for a period of 2 years was of revenue in nature. Since the agreement was for a period of two years and payment was also made in two years, it is rightly treated as revenue expenditure following the judgment of the Madhya Pradesh High Court in the case Umbrella Industries (Supra).

(3.) In view of this it is not necessary to go into the other issues as the period of agreement, namely, two years clinches the issue. It being a fact of finding, no substantial question of law arises. Dismissed.