In section 55 of 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 goodwill 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 portion, the following shall be substituted, namely :-
'For the purposes of sections 48 and 49, "cost of acquisition", -
(a) in relation to a capital asset, being goodwill 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, -'.