1986 (1) TMI 91

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..... e question referred to us for our opinion is as stated below : " Whether, on the facts and in the circumstances of this case, the Tribunal were correct in law in holding that no capital gain arose to the assessee on transfer of the goodwill for a consideration of Rs. 50,000 because there was no cost of acquisition nor any cost in the improvement of that capital asset ?" The assessment year in .....

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..... y the order of the Appellate Assistant Commissioner filed an appeal before the Income-tax Appellate Tribunal, Patna Bench. The Appellate Tribunal upheld the order of the Appellate Assistant Commissioner. The Department did not take the verdict of the Appellate Tribunal lying down and got this reference made to this court as stated above. Undisputed facts are that the proprietary firm had been es .....

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..... ital gains' suggests that they include an asset in the acquisition of which no cost at all can be conceived. When goodwill generated in a new business is sold and the consideration brought to tax, what is charged is the capital value of the asset and not any profit or gain." The facts of this case are that the goodwill had been generated by the assessee in a new business. Thus, the goodwill whic .....

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