Transfer of goodwill taxable under Capital Gain and not business income

SBM Chemicals & Instruments Pvt. Ltd. Vs ACIT (ITAT Mumbai)

ITAT Mumbai held that amount received by the appellant from VMI in terms of the Settlement Agreement was consideration for transfer of goodwill and the same is taxable under Capital Gains and cannot be treated as business income.

Facts- The Appellant is an Indian private limited company engaged in the business of trading in Rubber, Chemicals, & equipment. Further, the Appellant also acted as commission age

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