9911796707
TMI Blog2015 (1) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... the purchases were made prior to the year 1995, thus, the assessee is entitled to deduction as claimed for – Decided in favour of assessee. - TAX APPEAL NO. 31 of 2005 - - - Dated:- 3-11-2014 - MR.KS JHAVERI AND MR. K.J.THAKER, JJ. MR SN SOPARKAR, Ld. SENIOR COUNSEL with MRS SWATI SOPARKAR, ADVOCATE FOR THE APPELLANT MR.VARUN K.PATEL, ADVOCATE FOR THE RESPONDENT ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE K.J.THAKER) 1. The assessee who is the original appellant before the Income Tax Appellate Tribunal is before us challenging the order passed by the Income Tax Appellate Tribunal, Ahmedabad Bench A for the year 1996-1997. 2. The brief facts of the case are that returns of income was filed on 30.11.1996 whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther to the company was doing the work of frozen foods and vegetables with blasting process. Now, the company envisaged deployment of individually Quick Frozen (IQF) technology for production of Frozen Foods and Vegetables in consumer and bulk packs. There is nothing but an expansion of existing line of business. During the year company has incurred expenditure as under :- Particulars Amount (Rs.) a. Legal Professional 5,74,370 b. Financial Charges 11,02,743 c. Employees Exp. 6,80,099 d. Travelling Exp. 5,54,710 e. Misc. E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g on the solitary decision of the Madras High Court being in the case of M. Raghavan vs. ACIT reported in 226 Income Tax Reports 145, the Assessing Officer had assessed the same to Tax by applying the provisions of Section 50 of the Act and the said order came to be confirmed. 8. This Tax Appeal came to be admitted on 14.02.2005 on the following question of law :- Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the sale proceeds received on sale of assets, whose actual cost was allowed as a deduction under the first proviso to Section 32(1) of the Act, are taxable under Section 50 of the Act? 9. Section 32(1)(ii) of the Act reads as follows :- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ious year, exceeds the aggregate of the following amounts, namely :- (i) expenditure incurred wholly and exclusively in connection with such transfer or transfers; (ii) the written down value of the block of assets at the beginning of the previous year; and (iii) the actual cost of any asset falling within the block of assets acquired during the previous year, such excess shall be deemed to be the capital gains arising from the transfer of short-term capital assets; (2) where any block of assets ceases to exist as such, for the reason that all the assets in that block are transferred during the previous year, the cost of acquisition of the block of assets shall be the written down value of the block of assets at the beginning of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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