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TMI Blog2011 (11) TMI 488X X X X Extracts X X X X X X X X Extracts X X X X ..... to any other person but it remained with the company in which approximately 99% shares are held by the erstwhile sole proprietor - Decided in favor of assessee. - IT APPEAL NO. 2021 (DELHI) OF 2008 - - - Dated:- 18-11-2011 - G.D. AGRAWAL, C.L. SETHI, JJ. Salil Mishra for the Appellant. P.S. Kashyap for the Respondent. ORDER G.D. Agrawal, Vice-President In this appeal by the revenue, as many as four grounds are raised. However, they are all against the deletion of the addition of Rs. 55,42,877 made by the Assessing Officer under the head 'Long Term Capital Gain'. At the time of hearing before us, it is stated by the ld. DR that during the accounting year relevant to assessment year under consideration, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 47(xiv) were duly fulfilled i.e. all the assets and liabilities of the sole proprietary concern immediately before the succession became the assets and liabilities of the company. The entire sale consideration was paid by way of allotment of the shares in the company and the assessee i.e. the sole proprietor did not receive any consideration in any other form. That after the allotment of the shares against the sale consideration, the shares held by the assessee, i.e. the sole proprietor, were worth more than Rs. 55 lakh, while the shares owned by the others were worth only Rs. 6000. Thus, the sole proprietor held the shares much more than 50% limit as prescribed in the Section. That the entire sale consideration of the proprietorship bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee was carrying on the business of running computer centre as proprietor thereof till 6.9.2000 and w.e.f. 7.9.2000, all the assets and liabilities were transferred to a company known as M/s Tuples Infotech Limited. The position of assets and liabilities of the company was as under:- Assets Fixed assets 8,887,788.31 Current assets 348,010.59 Loans Advances 319,640.32 Total 9,555,439.22 Liabilities Current liabilities 3,343,232.01 Secured Unsecured Loans 669,335.00 Total - 4,012,567.01 Excess of assets over liabilities 5,542,872 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r training centre became assets and liabilities of the company. Thus, the conditions of clause (a) were duly satisfied. The sole proprietor, i.e. the assessee, did not receive any consideration or the benefit directly or indirectly in any form or manner other than by way of allotment of shares in the company. Thus, the condition of clause (c) is also duly satisfied. As per clause (b) the shareholding of sole proprietor in the company should not be less than 50% of the total voting power in the company and his shareholding should continue as such for a period of five years from the date of succession. The consideration against the transfer of assets was credited in the company's books of account as share application money and, ultimately, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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