9911796707
TMI Blog1983 (7) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... He transferred 19p share out of total 20p share to five persons, who were strangers to the firm as follows. 1. Sardar Harinder Singh 5p. Rs. 80,000 2. Sardar Surjeet Singh 5p. Rs. 1,70,000 3. Sardar Manjeet Singh 5p. . 4. Sardar Gurdeep Singh 2p. RS. 32,140 5. Sardar Kiranjeet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se. The question before the Hon ble Supreme Court was whether goodwill was an asset within the meaning of s. 45 and whether transfer thereof resulted into capital gain. The Supreme Court held that goodwill could not be a capital asset within the meaning of s. 45 for the reasons; (i) that its acquisition cost could not be determined; (ii) that it is impossible to predicate the moment of its birth a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the acquisition cost is concerned, it cannot be determined either in the case of goodwill or in the case relating to right to receive share. On page 300, the Hon ble Supreme Court observes; "None of the provisions pertaining to the head "capital gains" suggests that they include an asset in an acquisition of which no cost at all can be conceived. "Shri Jhanwar, ld. representative of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... artner can contribute more capital but May have smaller share and vice versa. So, contribution of capital cannot be regarded to be the cost of acquisition of such right, nor has been argued before us as the revenue. There being no cost of acquisition of the right to receive share we respectfully following the decision of Hon ble Supreme Court, hold that the right to receive share is not an asset w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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