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Self-Generated Trademark Before 2002 Not Taxable as Capital Gain Due to Unascertainable Cost of Acquisition

TaxGuru•
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Summary

AI-Generated
  • The High Court has ruled that self-generated trademarks transferred before April 1, 2002, are not taxable as capital gains.
  • The court emphasized that the lack of an ascertainable cost of acquisition renders the computation provisions unworkable.
  • This decision clarifies the tax implications for businesses dealing with self-generated intellectual property prior to the specified date.
  • The ruling could significantly impact how companies account for and report such trademarks in their financial statements.

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