1983 (7) TMI 112

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....in this case. The assessee was entitled to 20p share in a firm M/s Deep Cinema. He transferred 19p share out of total 20p share to five persons, who were strangers to the firm as follows. 1. Sardar Harinder Singh 5p. Rs. 80,000 2. Sardar Surjeet Singh 5p. Rs. 1,70,000 3. Sardar Manjeet Singh 5p. . 4. Sardar Gurdeep Singh 2p. RS. 32,140 5. Sarda....

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....e. The question before the Hon'ble Supreme Court was whether goodwill was an asset within the meaning of s. 45 and whether transfer thereof resulted into capital gain. The Supreme Court held that goodwill could not be a capital asset within the meaning of s. 45 for the reasons; (i) that its acquisition cost could not be determined; (ii) that it is impossible to predicate the moment of its birth an....

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....s the acquisition cost is concerned, it cannot be determined either in the case of goodwill or in the case relating to right to receive share. On page 300, the Hon'ble Supreme Court observes; "None of the provisions pertaining to the head "capital gains" suggests that they include an asset in an acquisition of which no cost at all can be conceived. "Shri Jhanwar, ld. representative of the assessee....