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TMI Blog2017 (8) TMI 192X X X X Extracts X X X X X X X X Extracts X X X X ..... solution of the firm nor distribution of assets of the firm amongst the partners. No transfer of assets has taken place. It is further observed that the partnership firm was converted into a private limited company and the satellite rights thereafter vests with the company. The revaluation of the assets by the partnership firm would not attract any capital gain. There was no transfer as defined un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer and the Commissioner (Appeals) has been lost sight of by the Tribunal, thereby arriving at an erroeneous conclusion. 3 Mr.Mistri, the learned senior advocate for the respondent submits that there is no transfer of assets. The assets of the partnership firm stood vested with the company. The assets of the company were never distributed nor it is the case of dissolution of the firm. M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring Works reported in Volume 263 ITR 345 which has observed thus : "In this case, the erstwhile firm has been treated as a Limited Company by virtue of Section 575 of the Companies Act. It is not in dispute that in this case, the erstwhile firm became a Limited Company under Part IX of the Companies Act. Now, Section 45(4) clearly stipulates that there should be transfer by way of distribution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red creditors etc. This difference is very important. This difference is amply brought out conceptually in the judgment of the Supreme Court in the case of Malabar Fisheries Co. v. CIT[1979] 120 ITR 49 2 Taxman 409. In the present case, therefore, we are of the view that Section 45(4) is not attracted as the very first condition of transfer by way of distribution of capital assets is not satisfied ..... X X X X Extracts X X X X X X X X Extracts X X X X
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