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2011 (11) TMI 488 - ITAT NEW DELHITransfer of capital assets exempt u/s 47 - conversion of sole proprietorship into company - denial of exemption u/s 47(xiv) as on the date of succession and till the end of the relevant accounting year the shareholding of the sole proprietor was not more than 50% in the company - Held that:- It is not in dispute that all conditions of clause a, b, c, of Section 47(xiv) are satisfied. Merely because there is some delay in the allotment of shares against the share application money, it cannot be said that there is a violation of clause (b) of Section 47(xiv). It is abundantly clear that the ownership of the assets has not been transferred to any other person but it remained with the company in which approximately 99% shares are held by the erstwhile sole proprietor - Decided in favor of assessee.
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