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26.3 It was also pointed out by the learned AR for the assessee that there was no transfer of the capital assets by the holding company to the subsidiary and vice versa and therefore the provisions as specified under section 47(iv) & (v) are not applicable in the given facts and circumstances. Likewise, the provisions of section 47(vi) are not applicable to the present facts of the case for the simple reason that there was no goodwill appearing in the balance- sheet/block of assets of the amalgamating company. Similarly the other provisions as specified under section 47 (iva), 47(ivaa), 47(ivab), 47(ivb), 47(ivc), 47(ivca), 47(ivcb) , 47(ivcc, 47(xiii) and 47(xiv) are not applicable in the case of the assessee on account of goodwill shown by it in the books of accounts. In view of the above, the assessee claimed that the property being goodwill has not become its property in the mode as specified under section 47 of the Act. Accordingly the provisions of section 49(1)(iii)(e) of the Act cannot be applied in the case on hand. The assessee also contended that goodwill being a business asset cannot be treated as capital assets for applying the provisions of the capital gain.

(xiii) and clause (xiv) of section 47 or section 170 or to the amalgamating company and the amalgamated company in the case of amalgamation, or to the demerged company and the resulting company in the case of demerger, as the case may be, shall not exceed in any previous year the deduction calculated at the prescribed rates as if the succession or the amalgamation or the demerger, as the case may be, had not taken place, and such deduction shall be apportioned between the predecessor and the successor, or the amalgamating company and the amalgamated company, or the demerged company and the resulting company, as the case may be, in the ratio of the number of days for which the assets were used by them.] XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX Explanation 2.--For the purposes of this 40[sub-section] "written down value of the block of assets" shall have the same meaning as in clause *(c) of sub-section †(6) of section 43.] [Explanation 3.--For the purposes of this sub-section, the expressions "assets" and "block of assets" shall mean--