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2011 (5) TMI 465 - AT - Income TaxCapital gain - sale of proprietary concern - business purchase agreement revealed that the proprietary concern was taken over by the company as a going concern and this fact has not been disputed by the Revenue - It is also seen that the shareholding pattern of the company from the year 2002-03 to 2007-08, as submitted before the Registrar of Companies shows that the assessee had retained more than 51% of shareholding in the company all through these years as stipulated in section 47(xiv) - This fact was verified from the net worth statement of the assessee in which investment in the company is found to be in tact as shareholding and admittedly, no consideration from this company has passed to the assessee other than by way of allotment of shares which is also one of the requirement of section 47(xiv) - These facts clearly go to evince that the assessee has fully adhered to the conditions laid in section 47(xiv). Thus, do not find any infirmity in the order of the ld. CIT(A) and we are also of the considered opinion that this transaction has to be treated as a transfer within the meaning of section 47(xiv) and the surplus over the net worth is held to be exempt from income tax - Decided in favour of assessee.
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