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2012 (8) TMI 114 - ITAT MUMBAILong term capital gains - Exemption u/s 54EC - sub broker - assessee was carrying on some broking business with main broker and had about 1800 clients. This business was transferred to main broker - since the cost of goodwill was nil and assessee had purchased the capital bonds, assessee claimed deduction u/s. 54EC - Assessing Officer disallowed assessee's claim on ground that due to changes in SEBI Regulations regarding share trading, assessee could no more act as a sub-broker and, thus, assessee could not continue his business as a result of which there could be no transfer of goodwill - Held that:- Assessee could still act as a remisier - assessee still remained entitled to his commission which was to be shared by the main broker with such remisier - Simply because assessee preferred to sell his business along with tangible assets would not mean that the agreement would become that of an agency. It still remained an agreement between a principal to principal - clear case of sale of assets - deduction u/s. 54EC allowed - revenue's appeal is dismissed.
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