The assessee had, during the year, transferred its registered brand/trade-mark 'Hawaii' for a consideration of Rs.3,91,90,000/- on which VAT of Rs.15,07,308/- had been paid to the state government. Since the said brand has been developed by the assessee itself, its cost of acquisition was nil. However, in its computation of capital gain the assessee had, from the consideration received, reduced the amount of VAT. It is clear that VAT have been paid in respect of sale of the assessee's trade-mark. The assessee was statutorily required to pay VAT on the sale consideration received. Therefore, the expenditure was directly related with transfer of the asset namely trade-mark. I do not agree with the assessing officer's view that the expenditure on VAT was not related to transfer of trade-mark. Rather, the VAT was directly related to sale of trade-mark and was to be necessarily paid. Thus, this is an expenditure directly related to transfer of asset and hence deductible from sale of consideration in view of clause (i) of section 48. The disallowance of Rs.15,07,308/- is accordingly deleted."