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2003 (3) TMI 65 - HC - Income TaxCapital gains - The assessee, admittedly, was carrying on business in respect of some items other than white cement. It obtained a licence for setting up manufacturing business of white cement. Instead of setting up a business, the assessee had transferred the licence to some other concern. However, the assessee had some interest by way of shares held in the said concern and some of the directors were common. On account of transfer of the said licence, the assessee received a sum of Rs. 10 lakhs. In the return for the year 1986-87, this amount was shown but exemption was claimed by the assessee on the ground that this is not taxable either as income from business or as capital gains. – Held that - What was received on transfer of the licence, a capital asset within the meaning of section 2(14), was not an income from business under section 28 more particularly under clause (iv) and though chargeable, under the head "Capital gains" under section 45 but since incomputable by reason of sections 48 and 49, read with section 55(2) in assessment year 1986-87 the same could not be assessed to capital gains.
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