TMI Blog2014 (12) TMI 1199X X X X Extracts X X X X X X X X Extracts X X X X ..... ights vis.a.vis an item of property on the erstwhile shareholder. Unless these or other legal correlatives take place, it cannot be inferred that there was any distribution of assets. In the instant case, the shares of the respective shareholders in the respondent-company were defined under the partnership deed. The only change that has taken place on the respondent being transformed into a company was that the shares of the partners were reflected in the form of share certificates. Beyond that, there was no physical distribution of assets in the form of dividing them into parts, or allocation of the same to the respective partners or even distributing the monetary value thereof following the decision in Commissioner of Income-Tax Versus Te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in law and on facts of the case in holding that there is no transfer involved when the assessee gets itself registered under Para IX of the Companies Act, 1957 ? 3)Whether the Income Tax Appellate Tribunal is right in law and on facts of the case in holding that the assessee is not liable to any capital gain tax either u/s. 45(1) or 45(4) of the IT Act ? 4)Whether the Income Tax Appellate Tribunal is right in law and on facts of the case in directing to delete the addition of ₹ 1,28,13,831/- ? 3. The facts of the present case are that the respondent-assessee was a partnership firm. On 30th August, 1995, it filed its original return of income in respect of Assessment Year 1995-96 declaring total income of ₹ 1,93,930/-. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order of the Tribunal, the Revenue filed the present Tax Appeal before this Court raising the above mentioned substantial questions of law said to be arising from the order of the Tribunal. 6. Heard the learned advocates appearing for the parties and considered the submissions. Learned advocate Mr. Divatia submits that the same question came up for consideration before the Andhra Pradesh High Court in the case of Commissioner of Income Tax vs. United Fish Nets in Income Tax Tribunal Appeal No. 100 of 2002, wherein, interpretation of Sec. 45 was made and the questions of law formed raised herein were also the subject matter of decision in the said appeal. In para-14, the Andhra Pradesh High Court has held as under: 14. The underl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt in the case of Commissioner of Income Tax v. Rita Mechanical Works, reported in [2012] 344 ITR 544 (P H), which also takes us to take the same view regarding capital gain. The decision of the Bombay High Court in the case of Commissioner of Income Tax vs. Texspin Engineering and Manufacturing Works, reported in (2003) 263 ITR 345 would ennure for the benefit of the assessee as the same has been considered by the Punjab Haryana High Court in the case of Commissioner of Income Tax v. Rita Mechanical Works, reported in [2012] 344 ITR 544 (P H). In that view of the matter, we are unable to take a different view then the one taken by the Tribunal. Therefore, we are not giving any elaborate reasons and all the four questions are answered i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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