Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2009 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2009 (6) TMI 668 - AT - Income TaxTransfer of sole proprietorship business to company - exemption u/s 47(xiv) - revision u/s 263 - whether the CIT is right in invoking revisional jurisdiction under section 263 of the Act and directing to assess the goodwill to the extent of Rs. 2,45,00,000 under "capital gains tax" on the ground that all the conditions as laid down under the proviso to section 47(xiv)( c) of the Act are not fulfilled. - held that:- if the full amount due under the capital account and also the current account of the proprietor have to be clubbed and treated as the consideration payable to the sole proprietary concern on the transfer, then there could be no case of violation of sub-clause (c) of section 47(xiv) of the Act, during the previous year ended 31-3-2001, relevant to the assessment year 2001-02. This is because under sub-clause (c) of section 47(xiv) only if the consideration is received in any form or manner other than by way of allotment of shares, there can be said to be a violation of the provisions. During the year under appeal, the sole proprietor has not received any payment in cash or in kind or otherwise, except for allotment of shares in the company. - Decided in favor of assessee.
|