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TMI Blog2022 (3) TMI 620X X X X Extracts X X X X X X X X Extracts X X X X ..... the ITAT that since there is no consideration for transfer of a capital asset, the capital gains computation mechanism fails and thus no capital gains tax can be levied on such transfer. In the case of transfer of capital asset, what can be taxed in the hands of the seller under the Act is real or actual gain that accrues/arises from transfer of the assets and hence, in absence of any sale consideration (resultant profit from such transfer) no notional gain can be imputed in the hands of the seller to tax such transfer. 7. Even the Assessing Officer taking the revaluation of assets in Indus as valuation for transfer of undertaking is incorrect. The Assessing Officer has failed to understand that carrying out such revaluation and pass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lecom undertaking to Idea Cellular Ltd. (ICL) its holding company, no liability arose under the Income Tax Act, 1961. 3. Any other question may be added by the AO. 2. Assessee was a wholly owned subsidiary of Idea Cellular Limited (ICL) with effect from 28th February, 2007. Assessee had obtained a Unified Access Services License in November, 2006 for providing telecom services in Bihar (including Jharkhand) service area. During the subject F.Y. assessee filed a Scheme of Arrangement under Section 391 to 394 of the Companies Act, 1956 in the Bombay High Court as well as Gujarat High Court for demerging to ICL. Under the said scheme, assessee had transferred all the assets and liabilities under the telecom undertaking to ICL without ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd error with the conclusion of the ITAT that since there is no consideration for transfer of a capital asset, the capital gains computation mechanism fails and thus no capital gains tax can be levied on such transfer. 6. In the case of transfer of capital asset, what can be taxed in the hands of the seller under the Act is real or actual gain that accrues/arises from transfer of the assets and hence, in absence of any sale consideration (resultant profit from such transfer) no notional gain can be imputed in the hands of the seller to tax such transfer. 7. Even the Assessing Officer taking the revaluation of assets in Indus as valuation for transfer of undertaking is incorrect. The Assessing Officer has failed to understand that carr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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