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TMI Blog2008 (9) TMI 348X X X X Extracts X X X X X X X X Extracts X X X X ..... arned Tribunal and we express the same view as has been expressed by the learned Tribunal and uphold the order X X X X Extracts X X X X X X X X Extracts X X X X ..... 804 credited to capital as capital gains on account of transfer of goodwill since CCIPL had in its accounts treated the same as goodwill. The Assessing Officer also did not accept the contention of the assessee that even if the transfer was treated as goodwill, tax is not leviable due to the fact that the transfer was to a wholly owned subsidiary company and, accordingly, the exemption is available to the assessee under section 47(iv) of the said Act. It appears that the Assessing Officer finally held that section 47(iv) was not applicable to the present case as the transfer of business undertaking included transfer of stock-in-trade and the proviso to section 47(iv) excludes the operation of section 47(iv) in case the capital asset is tran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeals) has observed that no portion of the price could be attributed to stock-in-trade. The Assessing Officer had brought to capital gains tax the transfer of goodwill treating the goodwill as a capital asset rather than stock-in-trade. The Commissioner of Income-tax (Appeals), therefore, observed that the proviso to section 47(iv) has no application to the present case. The Commissioner of Income-tax (Appeals) granted relief to the assessee by holding as under: "(i). It was the entire packaging coating undertaking which was transferred in consideration of a slump price of Rs. 29,89,87,000 and no price was fixed item-by-item in respect of the different assets belonging to the undertaking. (ii.) In view of the decision of the Supreme Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as follows: "....In the impugned assessment order, the Assessing Officer has mentioned that the provisions of section 47(iv) were not applicable in view of the proviso to section 47(v). On a careful scrutiny of the said proviso, however, we do not find any merit in the Assessing Officer's said contention. Under the approved scheme of arrangement, the respondent had transferred the entire packaging coating business. Such business undertaking itself constituted distinct 'capital asset' under section 2(14) of the Act. For transfer of the said capital asset consideration was not determined with reference to individual asset but the consideration was determined with reference to capitalised value of the said business. In our opinion, the provis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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