The Tribunal had declined the refer the question "whether the amount received by the assessee towards goodwill on retirement from partnership is not liable to tax under the head capital gains". The matter was taken in appeal by the Revenue and the High Court affirmed the same. It appears that the point is covered by the two decisions of this Court in CIT v. B. C. Srinivasa Setty and in CIT v. Kaikobad Byramji & Sons noticing the decision of the Full Bench of Kerala High Court in CIT v. E. C. Jacob which was also a case of a Chartered Accountant retiring from partnership. Facts in the present case are similar to the case of CIT v. E. C. Jacob. In view of the aforesaid two decisions of this Court, the High Court was right in declining to entertain the application for reference. The appeal is dismissed with costs.
Commissioner Of Income Tax, Bombay v. Nanubai J. Desai
Commissioner Of Income Tax, Bombay v. Nanubai J. Desai
(Supreme Court Of India)
Civil Appeal No. 87(Nt) Of 1977 | 19-07-1994
Advocate List
Bench
- HON'BLE JUSTICE K. S. PARIPOORNAN
- HON'BLE JUSTICE N. VENKATACHALA
- HON'BLE JUSTICE YOGESHWAR DAYAL
Eq Citations
- (1994) SUPPL. 3 SCC 754
- LQ/SC/1994/650
Head Note
Income Tax — Capital Gains — Retirement from partnership — Goodwill received by assessee on retirement from partnership — Whether liable to tax under head capital gains — Held, point is covered by two decisions of Supreme Court in B C Srinivasa Setty, (1995) 217 ITR 553 and Kaikobad Byramji & Sons, (1995) 217 ITR 576 — Facts in present case are similar to case of E C Jacob, (1995) 217 ITR 586, Full Bench of Kerala High Court, a case of a Chartered Accountant retiring from partnership — High Court was right in declining to entertain application for reference — Income Tax Act, 1961, Ss. 45 and 46
