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2019 (12) TMI 1248 - ITAT KOLKATAAssessment of goodwill under the head capital gain - capital asset within the meaning of Section 2(14) - HELD THAT:- Assessee is an individual who was engaged in the business of mining in the state of Jharkhand for over 40 years. The assessee had therefore garnered substantial experience, reputation and credentials in the business of mining which was a valuable intangible asset. M/s GEMPL had sought to use the name and credentials of the assessee to pursue its object of conducting mining activities in Jharkhand. Although, the assessee continued to use his name in his personal business but he had transferred partial right to GEMPL permitting them to use his name and credentials as a part the company. In the circumstances the receipt of ₹ 75,00,000/- was towards transfer of goodwill which is a capital asset within the meaning of Section 2(14) of the Act and therefore transfer of such capital asset was rightly offered to tax u/s 45 of the Income Tax Act by the assessee. Considering all we are of the view that the amount received by the assessee on account of goodwill is a capital asset and liable to tax under the head capital gain. Therefore, we direct the Assessing Officer to assess the goodwill under the head capital gain. - Decided in favour of assessee.
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