Income from Assignment of patent for exploiting it commercially is Capital Gain

In absence of tax free income claim, no disallowance can be made U/s.14A The pre-requisite to invoke the provisions of section 14A read with rule 8D of the Rules is that the assessee should have claimed some expenditure against exempt income. In the case under consideration, no exempt income was shown by the assessee in its return, so, there was no justification for making disallowance of any kind. Income from Assignment of patent for exploiting it commercially is Capital Gain The patent was for the purpose to have right to manufacture/produce/process some article/thing. The patent was registe...