TMI Blog1983 (6) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... siness of the firm was acquired by a private limited company, namely, M/s. Nelson Type Foundry Private Ltd., on April 15, 1973, as per the agreement entered into by the firm and the company on March 21, 1973. In the return of income filed by the firm, the firm has included business income of Rs. 2,09,589, which included s. 41(2) profit of Rs. 1,47,341. Besides, the firm showed capital gains amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied on a decision of the Gujarat High Court in CIT v. Mohanbhai Pamabhai [1973] 91 ITR 393, as against the decision in CIT v. Rathnam Nadar [1969] 71 ITR 433, referred to and followed by the AAC. The tribunal confirmed the decision of the AAC that a sum of Rs. 3,31,700 should be deleted from the head " Capital gains ". Aggrieved by the order of the Tribunal, the Revenue has sought reference on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Setty [1981] 128 ITR 294 (SC), has approved the decision of this court in CIT v. Rathnam Nadar [1969] 71 ITR 433, and has held that goodwill is a self-generating asset, that it does not cost anything in terms of money to an assessee and that, therefore, it cannot be included as part of capital gains. In view of the fact that the decision of the Tribunal in this case is consistent with the view tak ..... X X X X Extracts X X X X X X X X Extracts X X X X
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