https://www.taxtmi.com/caselaws?id=7711 Goodwill transferred by a firm to private limited companies was held not to be a capital asset within section 12B of the Indian Income-tax Act, 1922. The Court reasoned that goodwill is inseparable from the business to which it attaches, cannot be separately owned or assigned an actual cost in the manner required by the computation provisions, and therefore falls outside the statutory conception of capital asset under section 2(4A). As the transfer was treated as a conversion of the partners' interest into shareholding without real profit or gain, no taxable capital gain arose on the transfer. en-us Thu, 11 Sep 1969 00:00:00 +0530 Tue, 17 Mar 2009 17:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7711 Goodwill transferred by a firm to private limited companies was held not to be a capital asset within section 12B of the Indian Income-tax Act, 1922. The Court reasoned that goodwill is inseparable from the business to which it attaches, cannot be separately owned or assigned an actual cost in the manner required by the computation provisions, and therefore falls outside the statutory conception of capital asset under section 2(4A). As the transfer was treated as a conversion of the partners' interest into shareholding without real profit or gain, no taxable capital gain arose on the transfer. Case-Laws Income Tax Thu, 11 Sep 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7711