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TMI Blog1989 (9) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... ference is "Whether, on the facts and in the circumstances of the case, the sum of Rs. 3,66,048, as determined by the income-tax authorities, is liable to be assessed in the hands of the assessee-firm under the first proviso to section 12B(2) ?" It is common ground that the assessee, a registered firm, converted itself into a private limited company under a sale deed dated July 11, 1960. The p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er at Rs. 5,68,098. He also estimated the value of the assessee's goodwill as on January 1, 1954, at Rs. 2,02,050. He treated the difference between the two estimated values, i.e., Rs. 3,66,048, as the assessee's income under the head "Capital gains". The Appellate Assistant Commissioner upheld the addition. In second appeal the Tribunal deleted the addition observing that goodwill was a self gene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal had decided the issue only on one ground and had rejected the assessee's miscellaneous application by order dated July 31, 1975, the assessee's contention that it had raised several contentions and the appeal was decided considering only one of the contentions, was noted by the Tribunal in its order. The Tribunal, of course, stated that it was not necessary for it to consider the other con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cost anything to the assessee. This being so, in view of the Supreme Court decision in CIT v. B. C. Srinivasa Setty [1981] 128 ITR 294, we have no difficulty in holding that the Tribunal was right that the goodwill being a self-generated asset, the surplus so determined by the Income-tax Officer was not assessable to tax as capital gains. The question of law is, accordingly, answered in the neg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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