Monopoly, continuous functioning and large orders at hand are sufficient basis for valuation of goodwill

Brief of the Case: In the cited case, Delhi High Court held that the monopoly enjoyed by the assessee in respect of the product manufactured, the continuous functioning, the large volume of orders at hand when the collaboration transaction took place, were sufficient basis for valuation. Facts of the Case: The assessee was taken over by a new company (i.e. M/s Motherson Sumi Systems Pvt. Ltd) in terms of a collaboration agreement dated 03-12-1986. The new company was promoted by the assessee and two Japanese companies. The Collaboration Agreement provided that the consideration of the unit as ...