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2014 (1) TMI 1351 - ITAT CHENNAIWhether transfer of goodwill amounts to long term capital gain - Held that:- Following G.K.Choksi & Co [2007 (11) TMI 7 - Supreme Court of India] - The word 'business' occurring in cl.(iv) of s.32(1) by no stretch of imagination, can be said to include 'profession' as well - If the expression 'business' is interpreted as including within its scope 'profession' it would not mean that the lacuna has been made good by giving a wider interpretation to the word business - There is nothing in s.32(1)(iv) which envisages the scope of word 'business' to include in it 'profession' as well - If the expression 'business' is interpreted to include within its scope 'profession' as well, it would be doing violence to the provisions of the Act. Such interpretation would amount to first creating an imaginative lacuna and then filling it up, which is not permissible in law. It can be safely construed that business and profession are two different streams and treatment has to be given differently in case the statue provides for taxing any income under the head 'business' only - The income arising out of sale of goodwill in case of 'profession' relates to the personal competence of the 'professional' - In profession, goodwill is gained by an individual from his personal skill and experience which he gains over the period of time - The sale of goodwill in the present case results in generation of capital receipts in the hands of the assessee out of his profession and as such do not come within the ambit of the provisions of section 55(2)(a) - Decided in favour of assessee.
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