2001 (6) TMI 813 - HC - Income Tax

Summary

The Gujarat High Court answered two questions referred by the Income Tax Appellate Tribunal. Question 1 was answered in favor of the revenue and against the assessee, while Question 2 was answered in favor of the revenue and against the assessee. The court concluded that the provisions of section 41(2) govern only specific assets for taxing the difference between the written down value and the actual cost. The transfer of assets by a company to its wholly owned subsidiary company will not attract capital gains provisions under certain conditions.