Section 25 - Amendment of section 55 - Finance Act, 1987

25. Amendment of section 55 In section 55 of the Income-tax Act, with effect from the 1st day of April, 1988, - (a) in sub-section (1), in clause (b), for the words cost of any improvement , in relation to a capital asset, - , the following shall be substituted, namely :- Cost of any improvement , - (1) in relation to a capital asset being goodwill of a business shall be taken to be nil; and (2) in relation to any other capital asset, - ; (b) in sub-section (2), for the opening portion, the following shall be substituted, namely :- For the purposes of sections 48 and 49, cost of acquisition , - (a) in relation to a capital asset, being goodwill of a business, - (i) in the case of acquisition of such asset by the assessee by purchase from a previous owner, means the amount of the purchase price; and (ii) in any other case, shall be taken to be nil; (b) in relation to any other capital asset, - .