Bombay H.C : Whether, on the facts and in the circumstances of the case, Rs. 50,000 received by the assessee for transferring the goodwill of the business were chargeable to tax under the head ‘Capital gains’ ?

Counsel Appeared

Manjula Singh & G.S. Jetly, for the Revenue : K.B. Bhujle & V.H. Patil, for the Assessee

S. P. BHARUCHA, J. :

Counsel are agreed that, the only question that is referred at the instance of the Revenue in this reference is covered by thejudgment of the Supreme Court in CIT vs. B. C. Srinivasa Setty (1981) 21 CTR (SC) 138: (1981) 128 ITR 294(SC). The question reads thus :

“Whether, on the facts and in the circumstances of the case, Rs. 50,000 received by the assessee for transferring the goodwill of the business were chargeable to tax under the head ‘Capital gains’ ?”

2. Having regard to the aforesaid judgment, the question is answered in the negative and in favour of the assessee. No order as to costs.

[Citation : 177 ITR 84]