assessee that
the specific provisions of section 47(xiii) which prevail over the general
provisions i.e. section ... factual aspects of the
matter, it is necessary to reproduce section 47(xiii) and 49 for the
purpose of clarity and reference.
Section 47 : Transactions
cannot be construed as transfer of capital
asset. Referring to Section 47(xiii) of the Act, the Ld.counsel
submitted that any transfer of capital ... assessee on the
ground that the condition stipulated in Section 47(xiii) (c) of the Act
7 I.T.A. No.1047/Chny
firm into a company is also
not in accordance with section 47(xiii) of the Act. The ld. CIT(A) had
dismissed the appeal ... proviso to Section 47 (xiii) of the Act. In sub clause (xiii) of
Sec 47, the statute had not recognized transfer of capital asset
resulting from such conversion will be
exempt from tax".
Sec. 47(xiii) , 47(xiv) and 47 A were introduced by finance (No.2) Bill ... language of sec
47 A(3) clearly shows that the condition as mentioned in clause (d) of proviso to sec
47(xiii
held not applicable in such a situation. Though provisions of Section 47(xiii) were not subsisting during the asst. year in appeal before ... insertion of Section 47(xii) has not changed the situation. Section 47(xiii) merely excludes certain transfer from the purview of the definition
firm upon revaluation of
its assets by claiming exemption u/s47(xiii) of the Act. The assets were
taken over by the assesses company ... issue at hand we reproduce the
provisions of section 47(xiii) of the Act as below:
[(xiii) 18[any transfer of a capital asset
business of a
partnership firm namely Updater Services. Under section 47(xiii) of the
Income Tax Act any transfer of capital asset or any tangible ... accounts of the company. Therefore, the
exemption given u/s 47(xiii) will not apply and the income should be
assessed in the hands
succession of firm by it as per the
provisions of section 47(xiii) of the I.T. Act.
2.2 The CIT(A) ought to have ... business falls within the ambit and scope
of provisions of s. 47(xiii) of the Act as:
1. There is a transfer of entire assets
transfer for the purpose of
capital gain u/s.47(xiii). Thus, the claim of depreciation on assets acquired under such
transfer is restricted only ... company. In absence of a
similar provision for succession u/s. 47(xiii), the firm could revalue
the assets before conversion and the company would
analyzing the provisions of section 32 r.w.s 47(xiii),
48, 49 & 55 and sections 28 to 41 and also section ... above provision shows that in case of succession
envisaged under section 47 (xiii) i.e the transfer under which the present
appellant
