Capital gain on relinquishment of rights in the assets of the ...
Income Tax
July 5, 2022
Capital gain on relinquishment of rights in the assets of the firm - ascertained goodwill for the purposes of accounting and settlement - When an Accounting Standard deals with a specific intangible asset, then AS-26 does not apply e.g., Valuation of Inventories. Also the internally generated goodwill arises when an enterprise incurs expenditure for future benefits e.g., Scientific Research, development of prototypes, etc., then the enterprise should not recognize any goodwill that may arise out of incurring of such expenditure at a future period as it is beyond the control of the enterprise. - AT
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