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TMI Blog2023 (10) TMI 1052X X X X Extracts X X X X X X X X Extracts X X X X ..... f the AAR. The effect of the affirmation of the ruling by the Hon ble High Court is that no liability is attracted towards the capital gain - whether short term or long term. Resultantly, the depreciation allowed has to be withdrawn. In view of this, Ground No.1 of the assesses appeal against the disallowance of depreciation on the transfer value of the asset is dismissed and Ground No.2 against the gain on transfer of technical know-how being treated as short term capital gain to the extent of Rs. 2.00 crore, as against the without prejudice claim of the assessee of the same being long term capital gain, is also dismissed as having become infructuous. The assessee s additional ground about no liability towards capital gain is allowed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndian company, namely, M/s. Anandeya Zinc Oxides Pvt. Ltd. and later on the remaining shares as well. Control and Management of M/s.Umicore Finance Luxembourg is outside India. M/s. Anandeya Zinc Oxides Pvt. Ltd. is a wholly owned subsidiary company of M/s.Umicore Finance Luxembourg. The conversion of partnership firm into M/s. Anandeya Zinc Oxides Pvt. Ltd. was not regarded as a transfer within the meaning of section 2(47) of the Act and no capital gain was charged to tax in the A.Y. 2006-07. The AO opined that, by acquisition of the entire share capital of M/s. Anandeya Zinc Oxides Pvt. Ltd. by M/s.Umicore Finance Luxembourg, it violated the mandate of proviso to clause (d) of section 47 (xiii) of the Act and hence, exemption from capital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt term or long term. Resultantly, the depreciation allowed has to be withdrawn. In view of this, Ground No.1 of the assesses appeal against the disallowance of depreciation on the transfer value of the asset to the extent of Rs. 68,79,894/- is dismissed and Ground No.2 against the gain on transfer of technical know-how being treated as short term capital gain to the extent of Rs. 2.00 crore, as against the without prejudice claim of the assessee of the same being long term capital gain, is also dismissed as having become infructuous. The assessee s additional ground about no liability towards capital gain is allowed. A.Y. 2010-11 : 5. The only issue raised in this appeal is against not allowing depreciation on the transfer value o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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