Income Tax Appellate Tribunal - Delhi
Shiv Narain Karmendra Narain vs Deputy Commissioner Of Income Tax on 17 July, 2000
ORDER
M. K. Chaturvedi, J.M.
1. Under s. 254(3) of the IT Act, 1961, Special Bench, was constituted to consider the following questions :
"(a) Whether, a firm is assessable to tax in respect of capital gains on the distribution of assets between the partners on the dissolution of the firm in view of s. 45(4) without there being a corresponding amendment in the definition of transfer given in s. 2(47) of IT Act, 1961 ?"
"(b) Whether for computing the income under the head 'Capital gains' under s. 45(4), the fair market value of the assets as may be estimated by the AO has to be treated as the full value of consideration received or accrued or the capital gains should be computed on the basis of book value on which the assets were transferred in favour of the partners upon dissolution of the firm ?"
"(c) Whether, for computing the short term capital gains on depreciable assets under s. 50 of IT Act, 1961, upon such dissolution of the firm, the fair market value of the assets should be treated as full consideration received on accrued or the capital gains should be computed on the basis of book value on which the assets were transferred in favour of the partners at the time of dissolution ?"
"(d) Whether, a business undertaking as a going concern is a capital asset in itself and whether such capital asset can be valued on global valuation method."
2. The learned counsel for the assessee, Shri H. G. Malik, vide letter, dated 7th July, 2000, submitted that to resolve the dispute assessee resorted to the Kar Vivad Samadhan Scheme. Certified copy of the form of certificate for full and final settlement of tax arrears under s. 90(2) r/w s. 91 of the Finance (No. 2) Act, 1998, in respect of K.V.S. Scheme, 1998, on Form 3 was submitted.
3. Shri Malik stated that in view of the settlement of the case under the K.V.S. Scheme, 1998, the appeal filed by the assessee does not survive for consideration. We have also heard the learned Departmental Representative on the point.
4. Taking into consideration the entire conspectus of the case in the light of the settlement made under the K.V.S. Scheme, we find that the present appeal has become infructuous. Accordingly, we dismiss the same.
5. In the result, the appeal of the assessee stands dismissed, as infructuous.