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Issues:
1. Whether a question of law arises out of the Tribunal's order for reference to the High Court. 2. Tax liability on the amount received by the assessee as goodwill on retirement from two firms. Analysis: Issue 1: The Commissioner of Income Tax sought a reference under s. 256(1) of the IT Act, 1961, to the High Court regarding a question of law arising from the Tribunal's order dated 10th March, 1976. However, the Tribunal declined to draw up a statement of the case for reference as they found no referable question of law in the said order. Issue 2: The assessee, an individual from Bombay, retired from two firms and received a total of Rs. 34,000 as goodwill. The Income Tax Officer (ITO) assessed this amount as capital gains without discussion. The assessee appealed to the AAC, who, relying on various decisions, directed the deletion of Rs. 15,950 from the capital gains tax. The Revenue then appealed to the Tribunal, which upheld the AAC's order based on the High Court decisions and earlier precedents. The question of law raised by the Revenue was whether the amount received as goodwill on retirement from the two firms was liable to capital gains tax. The Tribunal, after considering relevant case law, declined to refer this question to the High Court, citing precedents and the rejection of a similar reference in another case. In conclusion, the Tribunal rejected the Commissioner's application for reference, stating that no question of law arose from their order. The application was dismissed, and the Tribunal's decision to not refer the question to the High Court was upheld based on legal precedents and observations from other High Court cases.
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