Section 56(2)(x)(b), Income Tax Act – Immovable Property – Limited to Capital Asset or All Assets?
by Mahendra Kumar* and Sidhant Satya**
IncomeTaxAct
Delhi High Court upholds deductibility of license fees paid by Remfry & Sagar for use of founder’s name and goodwill under Section 37 IT Act
A payment made for use of goodwill cannot possibly be viewed as being an illegal purpose or one prohibited by law. A person would be obliged to part with consideration for the use of goodwill if it seeks to derive benefit and advantage therefrom.