https://www.taxtmi.com/caselaws?id=179362 Where a transfer is supported by a bona fide registered contract and no sham is found, the taxing authority cannot ignore the agreed consideration and substitute a notional market value for the sale of stock-in-trade. The contractual price had to be accepted, and no part of the alleged difference was taxable. Goodwill valuation must rest on recognised commercial principles, including past earnings and earning capacity, and cannot be cut down arbitrarily without relevant material. As the agreed goodwill consideration was not shown to be unreal or excessive, no portion of it was liable to tax. en-us Tue, 04 Jul 1961 00:00:00 +0530 Sat, 27 Feb 2016 10:27:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=179362 Where a transfer is supported by a bona fide registered contract and no sham is found, the taxing authority cannot ignore the agreed consideration and substitute a notional market value for the sale of stock-in-trade. The contractual price had to be accepted, and no part of the alleged difference was taxable. Goodwill valuation must rest on recognised commercial principles, including past earnings and earning capacity, and cannot be cut down arbitrarily without relevant material. As the agreed goodwill consideration was not shown to be unreal or excessive, no portion of it was liable to tax. Case-Laws Income Tax Tue, 04 Jul 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=179362