TMI Blog1994 (11) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... icial liquidator of the assessee-company on 23rd Jan., 1987. Both the movable and immovable assets, which were the subject-matter of sale, were handed over to FEW on 28th April, 1987. As per the order of the High Court dt. 12th Feb., 1987, FEW was to put up a proposal before the official liquidator regarding the apportionment of the price of Rs. 150 lakhs between movable and immovable assets for the purpose of execution and registration of the sale deed. In pursuance of the order of the High Court, FEW put up its final proposal regarding such apportionment by its letter dt. 15th July, 1988 and such proposal was also duly approved by the High Court on 24th March, 1989. While furnishing its return for asst. yr. 1987-88, the assessee contended ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. 1988-89 only. Thus, he deleted the assessment of capital gains and the additions under s. 41(2) in relation to asst. yr. 1987-88 and directed the Assessing Officer to compute the capital gains only for the asst. yr. 1988-89 as follows: . Rs. Rs. Total sale consideration . 1,50,00,000 Less : Book value of fixed assets as per the balance sheet as on 31st March,, 1980 59,14,356 . Less : Book value of furniture and fixture included in the above 1,14,899 . Book value of vehicles included in the above 2,26,755 3,41,654 . . 55,72,702 . . . Less : Book value of current assets being raw materials,, work-in- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before us. The assessee's grievance is that unabsorbed depreciation should be set off against the capital gains assessed. This part is covered in favour of the assessee in the decision of the Tribunal (Cochin Bench) dt. 19th July, 1994 in ITA No. 440/Coch/89 in the case of Brunton Co. (Engineers) Ltd.. On similar issue, the Tribunal, in para 9 of its order held as follows: "The CIT(A) has noticed that there is a cleavage of judicial opinion on the issue some in favour of the assessee and some against the assessee and he preferred to follow the decisions which are against the assessee—such as 10 ITR 477, 48 ITR 464, 129 ITR 561 and 152 ITR 694. In our considered opinion, when more than one view is possible, the one that is beneficial to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es and fees paid to Government counsel, the learned counsel for the assessee fairly submitted that the disallowance is justified, in the light of the decision reported in (1991) 191 ITR 645 (sic). Accordingly, the disallowance is sustained. 8. Lastly, it is contended that the income of the liquidator cannot be subjected to tax in the light of the decision of the Rajasthan High Court in (1987) 61 CTR (Raj) 185 : (1988) 169 ITR 493 (Raj). The learned Departmental Representative contends that the said decision is only in respect of advance tax liability and it cannot be said that the company itself is not liable to tax. Thus, he supported the order of the CIT(A) on this point. We uphold his contention and decide the issue against the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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