https://www.taxtmi.com/caselaws?id=8394 For excess profits tax computation, goodwill is treated as a business asset and included in capital employed at its true market value on the date of transfer, with only any excess price excluded. Shares purchased to protect a managing agency, rather than as trading stock, remain investments and are not part of capital employed because they do not directly and actively contribute to business profits. Managing agency commission is governed by the special annual basis in rule 9 of the First Schedule, so the commission is brought to tax in the corresponding chargeable accounting period when earned. en-us Wed, 28 Jul 1971 00:00:00 +0530 Sat, 11 Apr 2009 11:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8394 For excess profits tax computation, goodwill is treated as a business asset and included in capital employed at its true market value on the date of transfer, with only any excess price excluded. Shares purchased to protect a managing agency, rather than as trading stock, remain investments and are not part of capital employed because they do not directly and actively contribute to business profits. Managing agency commission is governed by the special annual basis in rule 9 of the First Schedule, so the commission is brought to tax in the corresponding chargeable accounting period when earned. Case-Laws Income Tax Wed, 28 Jul 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8394