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TMI Blog2009 (3) TMI 228X X X X Extracts X X X X X X X X Extracts X X X X ..... the relevant time was engaged in the business of running of a petrol pump allotted to it by Bharat Petroleum Corporation Ltd. It has filed its return of income on 24th Feb., 2007 declaring an income of Rs. 17,90,578. The firm was originally constituted vide a partnership deed dt. 8th July, 1963 comprising Shri Manohar Lal Juneja, Smt. Pushpawati Juneja and Shri Mahender Juneja, partners having shares in the ratios of 20 per cent, 20 per cent and 60 per cent respectively. Smt. Pushpawati Juneja retired on 31st March, 1968. On 1st of April, 1968, a fresh firm was constituted in between Shri Manohar Lal Juneja and Shri Mahender Juneja having shares of 25 per cent and 75 per cent. In June, 1995, Shri Manohar Lal Juneja, expressed his desire to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plicable whereas according to the AO, being goodwill it falls within s. 55(2)(a) of the Act. He denied the benefit of indexation of cost of acquisition to the assessee. He took the cost of acquisition at Rs. 200 disclosed by the assessee and computed the capital gain at Rs. 49,99,800. Appeal to the CIT(A) as well as to the Tribunal did not bring any relief to the assessee on quantum. 5. Learned AO has visited the assessee with penalty on the ground that it has furnished inaccurate particulars of income and resultantly concealed the income. He imposed a penalty of Rs. 12,86,512 under s. 271(1)(c) of the Act. 6. Appeal to the CIT(A) did not bring any relief to the assessee. 7. The learned counsel for the assessee while impugning the orders ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emplates the method of computation, the cost of acquisition as well as cost of improvement where goodwill is transferred. The learned counsel for the assessee pointed out that in the circular, it has been explained that capital gain tax on transfer of goodwill will be leviable only in case of actual transfer and not in the cases of notional transfer where new partners have been admitted. The learned counsel for the assessee in this way prayed that penalty is not imposable upon the assessee in the given circumstances. He placed on record brief synopsis wherein he has referred more than 50 cases in order to buttress his contention. On the other hand, learned Departmental Representative relied upon the orders of the Revenue authorities below. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l be taken to the purchase price and in all other cases it shall be taken to nil. The cost of improvement in either case would be taken to be nil. 28.3. The intention in bringing to tax the capital gains on transfer of goodwill is only to cover those cases where goodwill is actually transferred. Those cases where the transfer is notional, for example, when a new partner is admitted to a firm. would not be covered by the amendment. The new provisions will also not apply to professional firms." 9. According to the assessee, it has not actually transferred the goodwill. It has only admitted Shri S.K. Aggarwal, a new partner. It is running the petrol pump under the dealership of Bharat Petroleum. The only change is in the constitution of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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