TMI Blog1977 (6) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... in relation to the decision of the Tribunal to the effect that tax on the capital gains is not attracted on the transfer of goodwill. We propose to dispose of this rule on a very narrow ground. It is the contention of the revenue that having regard to the indenture dated February 17, 1969, capital gain has accrued to the assessee and tax is leviable having regard to the provisions of the Income-t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... part he shall be entitled to the sum of Rs. 1,50,000 and that the same shall be paid on such terms and conditions as the parties may agree upon. On the death of the party of the first part the sum of Rs. 1,50,000 shall be paid to the legal heirs or such persons as may be nominated by the party of the first part in ten equal annual instalments not exceeding Rs. 15,000. Having regard to these provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pinion, instead of supporting the contention of Mr. Joshi is against him. It is held in this case that in order to attract liability to tax on capital gains under section 12B of the Indian Income-tax Act, 1922, it is sufficient if in the relevant accounting year profits have arisen out of the sale of capital assets, that is to say, if the assessee has a right to receive the profits. It is not nece ..... X X X X Extracts X X X X X X X X Extracts X X X X
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