Capital Gain Tax on sale of self generated goodwill

This query is : Resolved

CA Abhishek Bagaria (Querist)
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31 January 2009 I would like to know the basis of calculation of period of holding in case of self generated goodwill, which will decide whether goodwill is a long term capital asset or short term capital asset

Deepak Agrawal

Deepak Agrawal (Expert)
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01 February 2009 From day it was recognised in books...
Cost will be "nil" as per srinaivasa case (landmark judgement)

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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01 February 2009 Full citation referred by Mr. Deepak is CIT Vs. B.C.Srinivasa Setty (1981) 208 ITR 882(SC).

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CA Abhishek Bagaria

CA Abhishek Bagaria (Querist)
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03 February 2009 I would like to know whether Sale of Self generated Goodwill, which is not recognised in books, will be Long Term Capital Asset or Short Term Capital Asset. The Company is in existance for around 5 years.

Regards,
CA Abhishek Bagaria