(8)Where any asset acquired in accordance with the scheme or the deposit scheme is sold or otherwise transferred in any previous year by the assessee to any person at any time before the expiry of eight years from the end of the previous year in which it was acquired, such part of the cost of such asset as is relatable to the deduction allowed under sub-section (1) shall be deemed to be the profits and gains of business or profession of the previous year in which the asset is sold or otherwise transferred and shall accordingly be chargeable to income-tax as the income of that previous year:Provided that nothing in this sub-section shall apply-(i)where the asset is sold or otherwise transferred by the assessee to Government, a local authority, a corporation established by or under a Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956); or(ii)where the sale or transfer of the asset is made in connection with the succession of a firm by a company in the business or profession carried on by the firm as a result of which the firm sells or otherwise transfers to the company any asset and the scheme] [or the deposit scheme] [ Inserted by Act 32 of 1994, Section 12 (w.e.f. 1.4.1995).][continues to apply to the company in the manner applicable to the firm. [Substituted by Act 12 of 1990, Section 10, for Section 32-AB (w.e.f. 1.4.1991).]Explanation. - The provisions of clause (ii) of the proviso shall apply only where-(i)all the properties of the firm relating to the business or profession immediately before the succession become the properties of the company;(ii)all the liabilities of the firm relating to the business or profession immediately before the succession become the liabilities of the company; and(iii)all the shareholders of the company were partners of the firm immediately before the succession.
