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TMI Blog1984 (12) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... hinery, furniture, fittings, stock-in-trade, etc., along with the goodwill of the business, and claimed before the ITO that the assessee has received Rs. 1 lakh on account of goodwill of the business, and, therefore, it is not taxable. The ITO did not agree with the claim of the assessee. He has taken the value of the goodwill at Rs. 12,500 and estimated the capital gains at Rs. 30,253. Being aggrieved, the assessee carried the matter before the AAC. The AAC has considered the decisions of their Lordships of the Supreme Court and High Court in CIT, Kerala v. West Coast Chemicals and Industries Ltd. [1962] 46 ITR 135, CIT (Central) Calcutta v. Mugneeram Bangur and Company [1963] 47 ITR 565 and held that the assessee has sold the business of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arried on business of buying land, developing it and then selling it, under an agreement ; the assessee sold the business as a going concern with its goodwill and all stock-in-trade to the company promoted by the partners. The issue was whether by the sale of the whole business concern, it could be held that there was taxable profits in the sum of Rs. 2,50,000. Their Lordships of the Supreme Court held that the sale was the sale of the whole concern and no part of the price was attributable to the cost of the land and no part of the price was taxable. The fact that in the schedule to the agreement, the price of the land was stated did not lead to the conclusion that part of the sale price was attributable to the land sold. What was given in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and had incurred Rs. 27,589 towards purchase of price of total assets of the business. The assessee had made additions of Rs. 6,063 to the assets during 1968-69 to 1970-71. Total depreciation allowed during the year up to date was Rs. 23,595. During the previous year relevant to the assessment year 1979-80 the assessee had sold business of Technical Printers for total consideration of Rs. 1 lakh. The ITO has charged the profits on sale of his business which includes the machinery and applied sub-section (2) of section 41. 7. We heard the rival submissions and considered the material on record. Sub-section (2) of section 41 provides that where any building, machinery, plant or furniture which is owned by the assessee and which was or has b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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