TaxTMI 
TaxTMI 
2009 (3) TMI 228
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....se are that the assessee at the relevant time was engaged in the business of running of a petrol pump allotted to it by Bharat Petroleum Corporation Ltd. It has filed its return of income on 24th Feb., 2007 declaring an income of Rs. 17,90,578. The firm was originally constituted vide a partnership deed dt. 8th July, 1963 comprising Shri Manohar Lal Juneja, Smt. Pushpawati Juneja and Shri Mahender Juneja, partners having shares in the ratios of 20 per cent, 20 per cent and 60 per cent respectively. Smt. Pushpawati Juneja retired on 31st March, 1968. On 1st of April, 1968, a fresh firm was constituted in between Shri Manohar Lal Juneja and Shri Mahender Juneja having shares of 25 per cent and 75 per cent. In June, 1995, Shri Manohar Lal June....
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....K. Aggarwal was introduced as a new partner and he paid a sum of Rs. 50 lacs for his entry into the partnership concern. The assessee in the return has disclosed a gain of Rs. 17,85,000. It computed this gain as under: Goodwill cost 100 Market value 1-4-81 being 20 times of average profit of last three years Average profit for last three years 31-3-1979 &n....
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.... 31,95,000 Sale price 50,00,000 Less: Expenses 20,000 &nb....
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....the assessee and computed the capital gain at Rs. 49,99,800. Appeal to the CIT(A) as well as to the Tribunal did not bring any relief to the assessee on quantum. 5. Learned AO has visited the assessee with penalty on the ground that it has furnished inaccurate particulars of income and resultantly concealed the income. He imposed a penalty of Rs. 12,86,512 under s. 271(1)(c) of the Act. 6. Appeal to the CIT(A) did not bring any relief to the assessee. 7. The learned counsel for the assessee while impugning the orders of the Revenue authorities below contended that the business of the firm could be continued upto and until a dealership has been granted to it by Bharat Petroleum Corporation Ltd. for running the petrol pump. Hence the....
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.... capital gain tax on transfer of goodwill will be leviable only in case of actual transfer and not in the cases of notional transfer where new partners have been admitted. The learned counsel for the assessee in this way prayed that penalty is not imposable upon the assessee in the given circumstances. He placed on record brief synopsis wherein he has referred more than 50 cases in order to buttress his contention. On the other hand, learned Departmental Representative relied upon the orders of the Revenue authorities below. He submitted that right from the assessment stage upto the Tribunal it has been held that assessee has transferred goodwill and liable to capital gains tax. There is no cost of acquisition for such goodwill and it is no....