9911796707
TMI Blog1986 (2) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... was as under : Value of current assets - 9,81,402 Buildings - 6,48,749 Machinery - 6,25,821 & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellate Assistant Commissioner that the sums of Rs. 8,67,505 and Rs. 2,01,841 could not be brought to tax. However, the claim for addition of the amount of Rs. 2,01,841 was, not pressed before the Tribunal. The Tribunal was, therefore, concerned only with the nature of the receipt of Rs. 8,67,505. The Tribunal on a consideration of the possibility of the concern yielding profits took the view that after a period of five years, the business would yield approximately a profit of Rs. 30,000 per year to the purchaser which was not very appreciable. The Tribunal, therefore, found that one of the assets transferred was land which would not increase in value over some years in future and looking into the circumstances, 20 per cent. of the overall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ether, on the facts and in the circumstances of the case, the Tribunal was right in holding that out of the surplus arising in pursuance of transactions emanating from the agreement of sale dated February 2, 1971, an apportionment could be made to goodwill? " Learned counsel appearing on behalf of the assessee has contended that the entire amount of Rs. 8,67,505 should have been treated as consideration received for the goodwill and consequently it was liable to be excluded for the purpose of computing the tax payable by the assessee. While urging that the entire amount was liable to be excluded for the purpose of computing tax, it was not possible for the learned counsel to substantiate as to how in respect of a concern which had been run ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustifiable, then that estimate must necessarily be accepted as a finding in this reference. There is, therefore, no reason to interfere with the finding recorded by the Tribunal that the approximate value of the goodwill should be computed at a round figure of Rs. 2,00,000. Once this finding is confirmed, necessarily the consequential finding that the balance of Rs. 6,67,505 will have to be treated as attributable to the sales of movable assets liable to be apportioned between long-term capital assets and short-term capital assets cannot be interfered with. In the view which we have taken, both the questions have to be answered in the affirmative. Accordingly, question No. 1 is answered in the affirmative and against the assessee. Question ..... X X X X Extracts X X X X X X X X Extracts X X X X
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