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Issues:
1. Disallowance of capital gains related to the transfer of shares to a partnership firm. 2. Taxation of accrued interest income on Compulsory Deposits under the Compulsory Deposit Scheme (ITP) Act, 1974. 3. Taxation of interest on a fixed deposit for the assessment year 1979-80. Detailed Analysis: 1. The first issue pertains to the disallowance of Rs. 2,13,175 as capital gains arising from the transfer of shares to a partnership firm. The Income Tax Officer (ITO) treated the transaction as a 'transfer' under the Income-tax Act, 1961, based on a decision of the Gujarat High Court. The assessee contended that the introduction of shares into the firm did not result in any capital gains as it was a conversion of a personal asset into a partnership asset. The dispute revolved around whether the transaction was a genuine contribution to the partnership or a device to convert personal assets into money. The appellate tribunal noted that the Supreme Court had held that no capital gains could be taxed if partners received no consideration and the transaction was genuine. As there was no finding that the transaction was sham or a ruse, the tribunal ruled in favor of the assessee, concluding that no capital gains were chargeable. 2. The second issue concerns the inclusion of Rs. 7,558 as accrued interest income on Compulsory Deposits under the Compulsory Deposit Scheme (ITP) Act, 1974. The ITO taxed the amount in the assessment year in question, citing that interest had accrued to the assessee under the scheme. However, the assessee had offered the amount for taxation in the subsequent year on a receipt basis since it was actually realized in the following year. The tribunal observed that the same amount cannot be taxed twice and upheld the assessee's claim, emphasizing that there was no justification for rejecting the claim. 3. The final issue relates to the taxation of Rs. 22,737 as interest on a fixed deposit for the assessment year 1979-80. The ITO asserted that the amount should be taxed in the relevant year, but the assessee argued that it was received and credited to the current account in the subsequent year. The tribunal examined the evidence, including a bank certificate and the assessment order for the succeeding year, which confirmed that the amount had been offered for taxation in the subsequent year. Consequently, the tribunal ruled in favor of the assessee, stating that there was no basis for taxing the amount in the assessment year 1979-80. In conclusion, the appellate tribunal allowed the appeal, ruling in favor of the assessee on all three issues raised in the case.
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