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TMI Blog2022 (3) TMI 1036X X X X Extracts X X X X X X X X Extracts X X X X ..... cedure. The jurisdiction of the review court is fairly well established and one of the principle objections against the review of judgment is that the error if is to be arrived at upon consideration of grounds of review, it accounts to re-appreciation of the core or totality of circumstances considered by the Division Bench. Such exercise is not termed as correcting the error apparent on the face of record or review jurisdiction exercised. The re-appreciation of circumstance for finding out the error apparent on record is avoided by this Court. The review petitioner failed to bring the grounds for review within the jurisdiction of applicable provision of law. The learned Standing Counsel though made a strenuous effort to decast the circu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conversion as a Private Limited Company, the enhanced value of land as reflected in the current account of the partners was shown as loan from the partners at the hands of Private Limited Company. The Assessing Officer treated the enhanced value of land as capital gains of the firm and brought it to capital gain tax. The Tribunal confirmed the said levy and demand of capital gain on appeal filed by the assessee, this Court framed the following questions of law: i) Whether revaluation of a capital asset of the assessee firm before its conversion as a company and crediting the enhanced value of the asset to the current account of the partners and treating it as loan from the partners in the account of the company amounts to violation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... law is, whether crediting the enhanced value to the current account of partners is correct or it should have been credited to capital account? Unless and until all the ingredients of Section 47 are complied with the assessee is liable to the levy and the demand on capital gain tax on revalued capital asset. Standing Counsel invited our attention to the findings in the judgment under review and urged that the errors now pointed out, in the form of grounds, attract the jurisdiction of review and the review may be allowed. 4. Learned Senior Advocate Mr. Joseph Markos argues that the grounds stated in the review petition do not come within the purview or jurisdiction of review. To appreciate whether, what is pointed out now by the review pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made in that manner, comes within the ambit of Section 45 of the Act and assessment has to be done accordingly. In making such assessment, the authority concerned is obliged to take note of the provisions contained in Section 47A(3) of the Act and then the liability to pay tax has to be imposed not on the erstwhile firm but on the successor company. 5. The law does not stipulate reflection of enhanced value of a capital asset through the capital account of the firm. There is no requirement in law that the enhanced value shall be reflected in capital account and the reflection in book of accounts is in the discretion of the assessee. The enhanced value when apportioned to the current account of the partners, by itself does not amount to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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