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2014 (4) TMI 522 - ITAT COCHINTransfer u/s 2(47) - Exemption u/s 47(xiii) - partnership firm succeeded by a private limited company. - The revaluation amount was shown as loan instead of treating the same as shares in the hands of the erstwhile partners / shareholders. - Whether, when no transfer within meaning of section 2(47) of Act, there cannot be any capital gain – Held that:- assets and liabilities of partnership firm as it existed at time of succession was not treated as shares of respective partners / shareholders - Treating value of land as loan in hands of company amounts to an indirect transfer of property to the partners - This is an accounting technique adopted by the partnership firm to avoid capital gain tax – Provisions of section 47(xiii) cannot be ignored when there is an indirect way of avoiding tax by applying accounting techniques against provisions of Income tax Act - Do not find any error, much less, a prima facie error – order of ITAT sustained - Decided against the assessee. Indexation of cost of acquisition – Held that:- assessee has not raised indexation issue before assessing officer - Though a ground was raised before CIT(A) with regard to indexation, this was not apparently disposed of by CIT(A) - Therefore, ground raised by assessee with regard to indexation is not arising out of order of CIT(A) - Assessing officer shall consider issue of indexation with regard to cost of property on merit in accordance with law after giving reasonable opportunity to assessee – Decided partly in favour of Assessee. Levy of interest u/s 234B and 234C - In respect of capital gain tax, there cannot be any levy of interest u/s 234B and 234C – Held that:- levy of interest u/s 234B and 234C on capital gain has to be computed in accordance with law while giving effect to order of this Tribunal - This Tribunal, at this stage, cannot compute interest - Assessing officer shall consider whether assessee is liable to pay interest u/s 234B and 234C on capital gain and thereafter compute same in accordance with law – Decided partly in favour of Assessee. Name of assessee in cause title – Held that:- in cause title, assessee has mentioned name as ‘K.T.C. Automobiles’ - However, at column No.10 of appeal memo assessee mentioned name as ‘K.T.C. Automobiles (P) Ltd’ - This may be reason for incorporating name of assessee as ‘K.T.C. Automobiles (P) Ltd’ - Name in cause title shall only be ‘K.T.C. Automobiles’ - Mentioning of the ‘K.T.C. Automobiles (P) Ltd’ in the cause title is an error – Decided in favour of Assessee.
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