TMI Blog2017 (8) TMI 192X X X X Extracts X X X X X X X X Extracts X X X X ..... ce. It is further observed that the partnership firm was converted into a private limited company and the satellite rights thereafter vests with the company. The revaluation of the assets by the partnership firm would not attract any capital gain. There was no transfer as defined under Section 47 of the Act. - Income Tax Appeal No. 207 of 2015 - - - Dated:- 31-7-2017 - S. V. Gangapurwala And A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals) has been lost sight of by the Tribunal, thereby arriving at an erroeneous conclusion. 3 Mr.Mistri, the learned senior advocate for the respondent submits that there is no transfer of assets. The assets of the partnership firm stood vested with the company. The assets of the company were never distributed nor it is the case of dissolution of the firm. Mere revaluation of the satellite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 263 ITR 345 which has observed thus : In this case, the erstwhile firm has been treated as a Limited Company by virtue of Section 575 of the Companies Act. It is not in dispute that in this case, the erstwhile firm became a Limited Company under Part IX of the Companies Act. Now, Section 45(4) clearly stipulates that there should be transfer by way of distribution of capital assets. Under Par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... very important. This difference is amply brought out conceptually in the judgment of the Supreme Court in the case of Malabar Fisheries Co. v. CIT[1979] 120 ITR 49 2 Taxman 409. In the present case, therefore, we are of the view that Section 45(4) is not attracted as the very first condition of transfer by way of distribution of capital assets is not satisfied. In the circumstances, the latter par ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
