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2011 (1) TMI 66 - AT - Income TaxCapital gains - Transfer of business - assessee company transferred its business to its hundred per cent subsidiary company - resulted in capital loss - assessee was in the process of setting up of another plant - total value of the plant was Rs. 37,93,64,000 which was transferred at Rs. 38,77,18,694 resulting into profit of Rs. 83,54,694 - return of income net capital loss was not claimed - assessing officer, however, assessed the capital gains of Rs. 83,54,694 chargeable to tax under capital gains ignoring the loss suffered by the assessee on transfer of business assets - assessee has transferred business and work in progress to hundred per cent subsidiary company and the subsidiary company is an Indian company - both the conditions of section 47(iv) are satisfied - capital gain arising on transfer of capital work in progress will not be chargeable to capital gains - At the same time the loss arising on transfer of business assets will not be allowable as deduction. - appeal filed by the Revenue dismissed
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