1976 (4) TMI 99

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....r ?" (ii) "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that only a sum of Rs. 10,823 could be brought to tax as capital gains in the assessee's case ?" (iii) "Whether, on the facts and in the circumstances of the case, the Tribunal was right in determining and had valid materials to determine the cost of acquisition of the business at Rs. 58,287 ?" 2. The assessee is a private limited company running a fleet of buses. Its previous year ended on 31st May, 1965 for the asst. yr. 1966-67 with which this application is concerned. During the accounting year, the company transferred its buses to a firm consisting of the same persons as the shareholders of the company as partners in the fi....

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....6 and 1964-65 were arrived at and 1-1/2 times of that profit which amounted to Rs. 69,100 was treated as capital gains under s.52(2). 3. The assessee appealed to the AAC. The AAC held that the route permits are in the nature of goodwill. He applied the decision in the case of Ratnam Nadar, reported in 71 ITR 433 and held that no capital gains can be brought to tax on the transfer of the goodwill. 4. The Revenue appealed to the Tribunal. It was contended that the subject matter of the transfer was the route permits, though described as goodwill. The real nature of the asset was route permit and according the decision in Ratnam Nadar's case, reported in 71 ITR 433 will not apply. On the other hand, the learned counsel for the assessee r....