A partnership firm is taken over by Pvt ltd company and company paid Goodwill to partners by issuing them shares of the company at premium. Is Goodwill taxable? and is it revenue or capital receipt?
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Taxability of goodwill revenue receipt or capital receipt?
Replies (2)
In this case Goodwill received by the partners in the form of shares of the company at premium is not taxable. For more clarification refer judgment given in the case ACIT v Smt. Mahinderpal Bhasin, High Court of Allahabad [1979] 117 ITR 26 (ALL.) which is attached.
I agree with RIKAR BABU.
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