TMI Blog2013 (6) TMI 924X X X X Extracts X X X X X X X X Extracts X X X X ..... by the revenue under Section 260A of the Income Tax Act 1961 ( the Act ) impugning the order dated 26 October 2006 of the Income Tax Appellate Tribunal, Mumbai ( the Tribunal ) for assessment year 1994 95. 2) The revenue has proposed the following question of law for the consideration of this Court. Whether on the facts and in the circumstances of the case and in law the Tribunal is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the earlier assessment year and transfer of the same to the company in the current assessment year amounts to deemed transfer. Thus, the Assessing Officer concluded that revaluation of land and building by the respondent assessee gave rise to a liability to capital gains tax. 4) In appeal, the CIT(A) allowed the appeal of the respondent assessee on the ground that it was already assessed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es not arise from the impugned order. The assessment order holds that capital gains tax is payable by a partnership firm on its conversion into a limited company under Part IX of the Companies Act, 1956. In fact, this issue is no longer res integra as it is covered by the decision of this Court in CIT vs. Taxspin Engineering and Mfg. Works (supra) wherein it has held that: In this case, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Companies Act, the properties vest in the company as they exist. On the other hand, distribution on dissolution pre supposes division, realization, encashment of assets and appropriation of the realized amount as per the priority like payment of taxes to the Government, BMC, etc. payment to unsecured creditors, etc. This difference is very important. This difference is amply brought out conce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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