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TMI Blog1979 (6) TMI 129X X X X Extracts X X X X X X X X Extracts X X X X ..... the Commissioner of Income-tax, Tamil Nadu IV, Madras, and is under s. 256(1) of the I.T. Act. The following question has been referred : " Whether, on the facts and in the circumstances of the case, it has been rightly held that there was no transfer of assets in the assessee's case within the meaning of section 2(47) read with section 45 of the Incometax Act, 1961 ?" The assessment year u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... book value of Rs. 2,46,260 for which the buses had been taken over by the firm. This difference of Rs. 53,740 was brought under the head " Capital gains ". In addition, the route permits were valued at Rs. 1,00,000 and this amount was also brought under the head " Capital gains ". The total capital gains thus arrived at amounted to Rs. 1,53,740. The AAC, on appeal, while upholding the validity of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtner, the capital account of the assessee was credited with a further sum of Rs. 15,000 being the agreed value of three lorries owned by the assessee and taken over by the firm. As the written down value of the lorries was only Rs. 2,558, the ITO treated the difference of Rs. 12,442 as profit of the assessee under s. 10(2)(vii) of the Indian I.T. Act, 1922. In considering the applicability of thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 1922 Act. Section 45 of the Act of 1961 envisages levy of tax on profits and gains arising from the transfer of a capital asset effected in the previous year. The expression " transfer " has been defined in section 2(47) of the I.T. Act, and it runs as follows: " `Transfer', in relation to a capital asset, includes the sale, exchange or relinquishment of the asset or the extinguishment of any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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