https://www.taxtmi.com/caselaws?id=38384 Capital gains tax was held inapplicable to the transfer of self-generated goodwill on incorporation of a business into a private limited company. The controlling principle was that capital gains arise only where the transferred capital asset has an ascertainable cost to the assessee in money terms, because both the charging provision and the computation mechanism depend on actual cost and the excess over that cost. Self-created goodwill, having no identifiable monetary acquisition cost, falls outside that framework and is not capable of producing a chargeable gain on transfer. The earlier view that the transaction was not a real sale was treated as no longer decisive; the decisive factor was the self-generated character of the goodwill. en-us Thu, 07 Jul 1977 00:00:00 +0530 Tue, 06 Apr 2010 09:55:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38384 Capital gains tax was held inapplicable to the transfer of self-generated goodwill on incorporation of a business into a private limited company. The controlling principle was that capital gains arise only where the transferred capital asset has an ascertainable cost to the assessee in money terms, because both the charging provision and the computation mechanism depend on actual cost and the excess over that cost. Self-created goodwill, having no identifiable monetary acquisition cost, falls outside that framework and is not capable of producing a chargeable gain on transfer. The earlier view that the transaction was not a real sale was treated as no longer decisive; the decisive factor was the self-generated character of the goodwill. Case-Laws Income Tax Thu, 07 Jul 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38384