PCIT v. Prakashchandra S Soni, HUF (2019) 107 taxmann.com 86 / 265 Taxman 16 (Guj.)(HC) Editorial : SLP of revenue is dismissed, PCIT v. Prakashchandra S Soni, HUF (2019) 265 Taxman 15 (SC)

S. 271(1)(c) : Penalty–Concealment–Sale of good will and Trade of firm is held to be taxable as capital gain-Deletion of penalty is held to be justified.[S. 28(i), 45]

Assessee was a partner in firm. During relevant year, partnership firm sold its trademark and goodwill and assessee’s share was credited in its books of account. During relevant year, assessee filed its return wherein income from sale of goodwill was declared as capital gain.  AO   held that said receipt is taxable as business income.  AO also levied the concealment penalty. Tribunal deleted the penalty which was affirmed by High Court.