https://www.taxtmi.com/caselaws?id=37779 The High Court of Calcutta ruled that goodwill of a business is considered a capital asset for taxation purposes under the Income-tax Act, 1961. The Court rejected the argument that goodwill should not be taxed under "capital gains" due to the lack of acquisition cost, affirming that even with a "nil" cost, the proceeds must be taxed. This decision aligned with the precedent set by the Supreme Court in Devidas Vithaldas & Co. v. CIT. The judgment favored the revenue, establishing that goodwill is indeed a capital asset subject to taxation. Sudhindra Mohan Guha concurred with the Court's decision. en-us Tue, 29 Aug 1978 00:00:00 +0530 Wed, 03 Aug 2016 17:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37779 The High Court of Calcutta ruled that goodwill of a business is considered a capital asset for taxation purposes under the Income-tax Act, 1961. The Court rejected the argument that goodwill should not be taxed under "capital gains" due to the lack of acquisition cost, affirming that even with a "nil" cost, the proceeds must be taxed. This decision aligned with the precedent set by the Supreme Court in Devidas Vithaldas & Co. v. CIT. The judgment favored the revenue, establishing that goodwill is indeed a capital asset subject to taxation. Sudhindra Mohan Guha concurred with the Court's decision. Case-Laws Income Tax Tue, 29 Aug 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37779