1991 (2) TMI 40 - HC - Income Tax

Summary

The High Court of Bombay ruled that the amount received by the assessee on the sale of goodwill is not liable to capital gains tax. The case involved the sale of a business to a limited company, with the consideration split up, and the Tribunal upheld that goodwill is a self-generated asset not subject to capital gains tax. The judgment is in line with the Supreme Court decision in CIT v. B. C. Srinivasa Setty [1981] 128 ITR 294.