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2011 (8) TMI 846 - HC - Income TaxCapital or revenue expenditure - the amount paid by the appellant engaged in the business of construction and sale of flats for acquiring unfinished civil works, work-in-progress and inventories - The assessee entered into the agreement with AFPL on 1st July, 1992, to take over by assignment and complete all the pending projects/contracts/ work-in-progress remaining to be completed by the transferor company and in future, take up by itself, housing projects - Clauses 8 and 9 of the agreement touches on the assessee-company being permitted by the transferor company to carry on its business from the space taken on lease by the transferor company and to make use of all the infrastructure facilities available therein - Held that: there is absolutely no clause therein, which brought a closure of the building divi- sion of the transferor company by the transfer agreement to contend that what had been transferred to the assessee was a capital asset - Held that: what was transferred under the agreement was in the nature of stock-in-trade and not the entire build- ing division of the transferor company and there are no clauses to lead to the inference that with the transfer of the ongoing projects and projects awaiting agreements to be signed, the transferor company had transferred its entire business - Decided in favor of the assessee
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