Uday Sinha, J.

1. This is a reference under Sec. 256(1) of the Income-tax Act, 1961, in relation to the assessment year 1970-71. The assessee was assessed in the status of a Hindu undivided family in relation to his shop styled "New Chaibasa Cycle Stores, Sadar Bazar, Chaibasa". The concern was sold to one N.P. Ahuja by a sale deed dated April 30, 1969, for Rs. 1,00,000. This was made up, according to the statement of the case, of closing value of stock-in-trade at Rs. 23,867.84. The outstanding dues with others was to the tune of Rs. 2,257.48. Rs. 71,918.90 was taken as long-term capital gain. The sale deed did not mention sale of any goodwill. The assessee did not state before the Income-tax Officer about the sale of any goodwill nor did the Income-tax Officer make any reference about goodwill. Surprisingly somehow the Appellate Assistant Commissioner treated this amount as being on account, of goodwill of the shop "New Chaibasa Cycle Stores". Describing the said sum as representing goodwill, the whole matter received a twist. Before the Appellate Assistant Commissioner, a letter dated May 26, 1971, was filed. This letter showed that there was an offer of Rs. 73,000 on ac