hello,
in case of computing capital gains of purchased goodwill,
wt will be the cost of acquisition?
is it cost of purchase or cost after indexation??
The Supreme Court in the case of CIT v. Smifs Securities Ltd. [2012] 210 Taxman 428/24 tax mann.com 222 has held that goodwill acquired on amalgamation (being difference between cost of assets and consideration paid) was a capital right which would fall under the expression 'any other business or commercial right of a similar nature' and, hence, eligible for depreciation while computing business income.
Refer: https://tax mann.com/budget/t1/allowance-of-depreciation-on-goodwill-need-clarification.aspx
For depreciable assets, question of indexation do not arise.
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