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2012 (4) TMI 86 - HC - Income TaxAssessment under scrutiny - assessee had transferred as per the agreement goodwill to client which AO contested that it cannot be treated as a capital receipt and be treated as a revenue receipt and brought to tax under the head "Profit and Gains of Business'' – Held that:- :- if the entire agreement is read as a whole there is no transfer of Goodwill at all - acquirer has not acquired the business name/brand name which is the main ingredients of Goodwill - said consideration is paid for sale, transfer and assigning the business, the network and benefits and obligations of pending contracts of the business and commercial rights associated with - consideration paid is not for the goodwill but it is for the assets, properties and rights of the transferor hence treated as capital receipt - in favour of assessee. Loss on shares disallowed by the assessing officer by invoking the explanation to Section 73 of the Act as the same amounted to speculative loss - Held that :- Section 73 deals with loss and speculative business - If a Company whose gross total income consists mainly of income which is chargeable under the heads "Interest on securities", the "Income from house property", "Capital gains" and "Income from other sources" and if such Company indulges in purchase and sale of shares then by a deeming provision that it is carrying on the speculation business is not attracted - Section 73 is not attracted and the assessing authority committed an error in disallowing the said deduction claimed by the assessee – in favour of assessee.
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