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Commissioner of Income Tax Vs. New Swadeshi Dyeing, Bleaching and Printing Mills - Court Judgment

LegalCrystal Citation
SubjectDirect Taxation
CourtMumbai High Court
Decided On
Case NumberI.T. Ref. No. 164 of 1975
Judge
Reported in(1980)50CTR(Bom)212
ActsIncome Tax Act, 1961 - Sections 256(1)
AppellantCommissioner of Income Tax
RespondentNew Swadeshi Dyeing, Bleaching and Printing Mills
Excerpt:
- - 50,000, received by the assessee-firm has the value of good-will, was not assessable as a long term capital gain in view of the fact that it was self generating assets.bharucha, j.1. this is a reference under s. 256(1) of the it act, 1961. counsel are agreed that the tribunal's order has proceeded on the basis that the amount of rs. 50,000, received by the assessee-firm has the value of good-will, was not assessable as a long term capital gain in view of the fact that it was self generating assets. counsel are agreed that, in the circumstances, and in view of the judgment of the supreme court in cit v. b. c. srinivasa shetty : [1981]128itr294(sc) . the question must be answered in the negative and in favour of the assessee. the question is so answered.2. no order as to costs.
Judgment:

Bharucha, J.

1. This is a reference under s. 256(1) of the IT Act, 1961. Counsel are agreed that the Tribunal's order has proceeded on the basis that the amount of Rs. 50,000, received by the assessee-firm has the value of good-will, was not assessable as a long term capital gain in view of the fact that it was self generating assets. Counsel are agreed that, in the circumstances, and in view of the judgment of the Supreme Court in CIT v. B. C. Srinivasa Shetty : [1981]128ITR294(SC) . the question must be answered in the negative and in favour of the assessee. The question is so answered.

2. No order as to costs.


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