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2016 (6) TMI 958 - GUJARAT HIGH COURT

2016 (6) TMI 958 - GUJARAT HIGH COURT - TMI - Slump sale of an undertaking - whether corresponding WDV is required to be reduced from the remaining block and depreciation on such reduced block can only be allowed as held by ITAT? - Held that:- It is to be noted that Section 43(6) which provides “written down value”, more particularly clause (C) whereby Section 43 (6)(c) was amended on 01/04/2000 and therefore the observations in paragraph No.19.1 of ITAT are contrary to the law which was prevail .....

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res are issued prior to the amendment to S.55(2)(aa) - Held that:- As so far as the finding of the AO rejecting the claim of the appellant on the ground that the cost of the bonus shares is to be taken at NIL as per the amended provisions of law, in view of the judgment of the Constitutional Bench in case of CIT V. Gold Co. Ltd. [1969 (4) TMI 29 - SUPREME Court ] which has been referred to in Escorts Farms (Ramgarh) Ltd. (1996 (9) TMI 4 - SUPREME Court ), Section 55(2)(aa) which came into operat .....

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NOURABLE MR.JUSTICE KS JHAVERI) By way of this appeal, the appellant - assessee has challenged the order passed by the ITAT in ITA No.1527/Ahd/2001 dated 16/09/2004 for the assessment year 1997-98, whereby the Tribunal has held that in case of slump sale of an undertaking, its corresponding WDV is required to be reduced from the remaining block and depreciation on such reduced block can only be allowed to the appellant, as also the cost of bonus shares are to be taken at rupees nil even if the s .....

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age cost of the shares were taken into consideration and not the full cost while quantifying the capital gains. 3. The Assessing Officer has rejected the claim of the assessee as well as by the CIT (Appeals) and the ITAT. 4. While admitting the present appeal, the following substantial questions of law were raised: (i) Whether, in the facts and circumstances of the case the ITAT was right in law in holding that in case of slump sale of an undertaking, its corresponding WDV is required to be redu .....

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e said bonus shares are issued prior to the amendment to S.55(2)(aa) of the Act? 5. Learned Counsel Mr.Soparkar for the appellant has relied upon Section 43(6) which provides written down value , more particularly clause (C) whereby Section 43(6)(c) was amended on 01/04/2000 and therefore it was contended that the Tribunal while considering the contention of the appellantassessee has considered the case of the appellant in paragraph No.19, but has held against the present appellant in paragraph .....

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ting the long term capital gains and has relied upon the decision in case of Escorts Farms (Ramgarh) Ltd. v. Commissioner of Incometax 222 ITR 509 wherein judgment of the Constitutional Bench in case of CIT V. Gold Co. Ltd. [1970] 78 ITR 16 has been referred. He has therefore contended that the average share price ought to have been taken into account prior to amendment in view of the decision of the Hon'ble Supreme Court and subsequently amended law which was sought to be, but cannot be mad .....

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