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TMI Blog1976 (9) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... pinion of this court : " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the profit of Rs. 67,125 which arose out of the transfer of the import licence by the assessee to a third party did not attract capital gains tax ? " The relevant facts are as follows : Under the National Defence Remittance Scheme, import licences were b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n further appeal before the Tribunal, it was contended that no capital gain was involved in the transfer of the licence as it did not cost anything in terms of money in its creation or acquisition and for this purpose reliance was placed on a decision of this court in Commissioner of Income-tax v. K. Rathnam Nadar [1969] 71 ITR 433 (Mad) and also a decision of the Calcutta High Court in Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal has held that there was no liability for capital gains tax. The decision of this court in Commissioner of Income-tax v. K. Rathnam Nadar [1969] 71 ITR 433 (Mad), as mentioned above, was relied on by the Tribunal in support of its conclusion. In that case which dealt with a case of transfer of goodwill the question was whether the transfer attracted the liability to capital gains tax. In the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) may suggest that the capital gain arises only on the transfer of a capital asset which has actually cost to the assessee something in money. The actual cost in the context of the Income-tax Act can only be cost in terms of money. It cannot, it would appear, apply to transfer of capital assets (assuming that the goodwill is a capital asset, about which there was not much dispute), which did not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in terms of money in the creation and acquisition of the capital asset. It is this question that was considered by the court and answered against the revenue having regard to the language of section 12B(2)(ii). The provisions of the Income-tax, Act, 1961, in so far as this point is concerned are identical. It follows that the said decision would apply to the transfer of the licence here also which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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