https://www.taxtmi.com/caselaws?id=11686 A composite slump price on transfer of a going concern is not assessable as business income under section 41(2) unless the portion attributable to depreciable assets can be separately and reliably identified. Where the consideration is a single lump sum and the record does not permit a workable apportionment to depreciable assets, the surplus cannot be computed and taxed under that head. The receipt may still fall within capital gains to the extent the capital element is ascertainable, because the transfer involves capital assets with determinable cost of acquisition. The note states that the business-income charge fails on these facts, while the capital gains question survives for quantification. en-us Tue, 13 May 2003 00:00:00 +0530 Fri, 05 Feb 2010 19:06:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11686 A composite slump price on transfer of a going concern is not assessable as business income under section 41(2) unless the portion attributable to depreciable assets can be separately and reliably identified. Where the consideration is a single lump sum and the record does not permit a workable apportionment to depreciable assets, the surplus cannot be computed and taxed under that head. The receipt may still fall within capital gains to the extent the capital element is ascertainable, because the transfer involves capital assets with determinable cost of acquisition. The note states that the business-income charge fails on these facts, while the capital gains question survives for quantification. Case-Laws Income Tax Tue, 13 May 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11686