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2015 (1) TMI 611 - HC - Income TaxCapital gains tax - dissolution of firm - Transactions not regarded as transfer - appellant sold its assets, worth ₹ 33,02,349/-; the actual sale value thereof is ₹ 1,12,93,389/- - makeover of assets from the firm to its own sister company - Held that:- The Tribunal held that the sale took place, before the dissolution of the firm and it is not a case of distribution of assets, contemplated under Section 45 (4) of the Act. The argument on behalf of the appellant that once the case does not fall under Section 45 (4) of the Act, the matter must be left at that, cannot be accepted. The finding that there was no distribution of assets does not lead to a conclusion that there is no transfer at all, particularly when it is not even disputed that the sale as such has taken place, with the participation of the appellant. In the instant case, the consideration in the form of allotment of shares was paid to the partners of the appellant on its instructions. There was no direct transaction between the partners on the one hand and the transferee company, on the other. An attempt is made to apply the concept underlying Clause (xiii) of Section 47 of the Act. Firstly, the provision was not in vogue in the relevant assessment year. Secondly, assuming that the concept was in the offing and in a given case, it may be applied if the facts support. The case of the appellant does not fall into that. It was not a case of succession of the firm by the appellant firm by the transferee company, much less there was any exercise of corporatisation or demutualization, which are essential to attract Clause (xiii) of Section 47 of the Act. The appellant is not able to demonstrate that the figures mentioned by the Assessing Officer are incorrect. Appeal dismissed. - Decided against assessee.
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