https://www.taxtmi.com/caselaws?id=250253 The court upheld that there was no transfer of self-generated goodwill, hence not subject to taxation. The distribution of goodwill did not constitute a transfer as no assets were transferred to retiring partners. Regarding the unexplained cash credit, it was properly sourced from loans, leading to the deletion of the addition to the income. The interpretation of Section 45(4) clarified that for it to apply, there must be a transfer of capital asset resulting in profits or gains to the firm, which did not occur in this case. Therefore, the appeal by the revenue was dismissed. en-us Mon, 23 Jun 2014 00:00:00 +0530 Thu, 07 Aug 2014 10:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=250253 The court upheld that there was no transfer of self-generated goodwill, hence not subject to taxation. The distribution of goodwill did not constitute a transfer as no assets were transferred to retiring partners. Regarding the unexplained cash credit, it was properly sourced from loans, leading to the deletion of the addition to the income. The interpretation of Section 45(4) clarified that for it to apply, there must be a transfer of capital asset resulting in profits or gains to the firm, which did not occur in this case. Therefore, the appeal by the revenue was dismissed. Case-Laws Income Tax Mon, 23 Jun 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=250253