TMI Blog1980 (4) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... t was entered into by the assessee and the others with the Travel Corporation of India Pvt. Ltd. under which the assessee transferred the inward foreign Tourist activities to the Travel Corporation of India Pvt. Ltd., and the Travel Corporation of India Pvt. Ltd. issued to the assessee fully paid up shares of Rs. 58,300. In the assessment proceedings for the assessment year 1962-63, this sum of Rs. 58,300 was treated as capital gains in the hands of the assessee by the ITO. The AAC held that there was an exchange or relinquishment of an asset by the assessee, the value of which was estimated by him as on 1st January, 1954, at Rs. 10,000 and the amount of capital gains was thus reduced to Rs. 48,300. The Tribunal on a consideration of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ets transferred by the assessee ". The Tribunal, therefore, partly allowed the appeal by holding that there was no capital gains liability to the extent of Rs. 48,000 which was the value of the goodwill and the capital gains liability was held attracted to the extent of Rs. 10,000, the so-called tangible assets being valued at Rs. 300 as on 1st January, 1954. Arising out of this order of the Tribunal, three questions have been referred to this court, the first two at the instance of the revenue and the third at the instance of the assessee. They are as follows : "(1) Whether, on the, facts and in the circumstances of the case, any capital gains liability arises against the assessee in respect of the goodwill transferred by it to the Tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g authorities including the Tribunal indicate which were the tangible assets which were transferred and whose value was being determined at Rs. 10,300. There was thus no justification for breaking up the amount of Rs. 58,300 into Rs. 48,000 as value of the goodwill and Rs. 10,300 as value of some tangible assets. Question No. 2 will, therefore, have to be answered in the negative and in favour of the assessee. Consequently, question No. 3 referred at the instance of the assessee will have to be answered in the negative and in favour of the assessee. The questions referred are accordingly answered as follows: Question No. 1 : In the negative and in favour of the assessee. Question No. 2: In the negative and in favour of the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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