9911796707
TMI Blog1980 (2) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee was not liable to tax on the capital gains of Rs. 95,158 arising out of the transfer of buses and Rs. 47,616 arising out of the route permits on the ground that understatement of consideration has not been proved by the department ? " The assessee in this case is a registered firm by name Messrs. Southern Transports, Madurai. During the assessment year 1961-62, the said firm sold 9 route buses and 2 spare buses to a new company known as Messrs. Southern Rajamani Transports (P.) Ltd., Madurai, for a total consideration of Rs. 2,60,000. Since the written down value of the said 11 buses as on September 1, 1959, was Rs. 2,67,359, which was higher than the actual value of the buses, the ITO subjected the transaction of sale to a deta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessing authority, the assessee went up in appeal. The AAC, however, held that the market value of the buses should be taken as Rs. 2,60,000 and hence there will be no capital gains on the sale of the buses and in that view he deleted the capital gains of Rs. 95,158 computed by the ITO for the transfer of buses. With regard to the computation of capital gains on the transfer of route permits, he held that the partners' remuneration should be deducted from the profits of the firm and the route value should be taken at 1 1/2 times the average profits as against 2 times adopted by the ITO. On this basis, he determined the capital gains on the transfer of the bus routes at Rs. 47,616 as against Rs. 63,414 computed by the ITO. Aggrie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this view, the Tribunal held that both in respect of transfer of buses as also the transfer of route permits, there was no capital gain. In this view, the Tribunal allowed the assessee's appeal and dismissed the appeal filed by the revenue. Aggrieved against the decision of the Tribunal, the revenue has chosen to ask for this reference on the two questions set out above. It is seen from the order of the Tribunal that there is no understatement of consideration, and that it has also not been established by the revenue that the assessed had received any consideration higher, than Rs. 2,60,000 disclosed in the books of account for the transfer of buses with route permits. The Tribunal also proceeds on the basis that the consideration of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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