9911796707
TMI Blog1983 (7) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... tled to 20p share in a firm M/s Deep Cinema. He transferred 19p share out of total 20p share to five persons, who were strangers to the firm as follows. 1. Sardar Harinder Singh 5p. Rs. 80,000 2. Sardar Surjeet Singh 5p. Rs. 1,70,000 3. Sardar Manjeet Singh 5p. . 4. Sardar Gurdeep Singh 2p. RS. 32,140 5. Sardar Kiranjeet Singh 2p. Rs. 32,000 The entire receipt of Rs. 3,15,140 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asset within the meaning of s. 45 and whether transfer thereof resulted into capital gain. The Supreme Court held that goodwill could not be a capital asset within the meaning of s. 45 for the reasons; (i) that its acquisition cost could not be determined; (ii) that it is impossible to predicate the moment of its birth and (iii) that when goodwill generated in a new business is sold and a consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of goodwill or in the case relating to right to receive share. On page 300, the Hon'ble Supreme Court observes; "None of the provisions pertaining to the head "capital gains" suggests that they include an asset in an acquisition of which no cost at all can be conceived. "Shri Jhanwar, ld. representative of the assessee, argues that when the assessee became a partner in the firm and acquired rig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... So, contribution of capital cannot be regarded to be the cost of acquisition of such right, nor has been argued before us as the revenue. There being no cost of acquisition of the right to receive share we respectfully following the decision of Hon'ble Supreme Court, hold that the right to receive share is not an asset within the meaning of s. 45 of the IT Act, 1961 and, therefore, on transfer of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
