1965 (6) TMI 3 - HC - Income Tax

Gift-Tax - (1) Whether a specific transfer of goodwill is necessary to invoke the provisions of the Gift-tax Act ? - (2) Whether by the transfer of the business the father had impliedly transferred the goodwill that attached to that business ? and - (3) Whether the calculation of the value of the goodwill by the Gift-tax Officer is correct ?

Summary

The High Court of Kerala ruled that the value of the gift to the four sons should be considered as four-fifths of the market value of the business. The value of the gift was calculated to be Rs. 1,41,304, resulting in a tax of Rs. 7,504.32. The court answered the questions against the assessee and in favor of the department.