Amendment of section 55

Section 25 of the Finance Act, 1987 deals with amendment of section 55. Amendment of section 55 25. In section 55 if the Income-tax Act, with effect from the 1st day of April, 1988,— (a) in sub-section (1), in clause (b), for the words "cost of any improvement", in relation to a capital asset,—', the following shall be substituted, namely:— ' "cost of any improvement",—

Amendment of section 55

25. In section 55 if the Income-tax Act, with effect from the 1st day of April, 1988,—

(a) in sub-section (1), in clause (b), for the words "cost of any improvement", in relation to a capital asset,—', the following shall be substituted, namely:—

' "cost of any improvement",—

(1) in relation to a capital asset being good will of a business shall be taken to be nil; and

(2) in relation to any other capital asset,-',

(b) in sub-section (2), for the opening protion, the following shall be substituted, namely:—

For the purposes of sections 48 and 49, ''cost of acqusition",—

(a) in relation to a Capital asset, being good will of a business,—

(i) in the case of acquisition of such asset by the assessee by purchase from a previous owner, means the amount of the purchase price; and

(ii) in any other case, shall be taken to be nil;

(b) in relation to any other capital asset,—'

[Finance Act, 1987]

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Section 25, The Finance Act, 1987 (Act 11 of 1987).