9911796707
TMI Blog1996 (1) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... case, the Tribunal was justified in law in deleting from the total income of the assessee the capital gains amounting to Rs. 1,03,609 ? " The facts lie in a narrow compass. The non-applicant-assessee was assessed in the status of an individual in the year 1976-77. The previous year ended on March 31, 1976. The assessee was the sole owner of " Lokendra Bhawan ". The assessee sold the land appurtenant to this Bhawan into plots for a total consideration of Rs. 1,42,836. After deduction of the brokerage fee, cost of acquisition and cost of development, the Income-tax Officer computed the total gain arising from the sale of plots at Rs. 1,21,850. Durgajyoti Palace, Indore, originally belonged to the assessee. His wife, Her Highness Prabha Raj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Vyas, learned counsel for the applicant Department. None appeared for the non-applicant-assessee. It is seen that the Commissioner of Income-tax (Appeals), in passing the order, had followed the earlier order of the Tribunal passed in I.T.A. Nos. 93 and 236/Ind. of 1981 relating to the assessment year 1977-78, dated March 1, 1982. The Tribunal had upheld the order of the Commissioner of Income-tax (Appeals) and maintained the order of deletion of the sum of Rs. 1,03,609. The Tribunal had concluded as under : " The assessee did not disclose its capital gain on the ground that the capital gain was not chargeable at all because the property was acquired by the founder of the State the late Shri Ratansinghji without any cost and the same was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Prabhudas and Co. [1970] 76 ITR 566, the Delhi High Court in Jagdev Singh Mumick v. CIT [1971] 81 ITR 500, the Kerala High Court in CIT v. E. C. Jacob [1973] 89 ITR 88 [FB], the Bombay High Court in CIT v. Home Industries and Co. [1977] 107 ITR 609 and CIT v. Michel Postel [1978] 112 ITR 315 and the Madhya Pradesh High Court in CIT v. Jaswantlal Dayabhai [1978] 114 ITR 798, have taken the view that the receipt on the transfer of goodwill generated in a business is not subject to income-tax as a capital gain. On the other side lies the view taken by the Gujarat High Court in CIT v. Mohanbhai Pamabhai [1973] 91 ITR 393 and the Calcutta High Court in K. N. Daftary v. CIT [1977] 106 ITR 998, that even if no cost is incurred in building up th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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