https://www.taxtmi.com/caselaws?id=168507 The article explains that, in taxing statutes, the term "sale" is construed by its real commercial substance rather than its formal legal shape. A transfer of assets by a firm to a newly formed private company with the same persons behind both entities was treated as a restructuring of the same business ownership, not a genuine commercial sale. Because the transaction was a readjustment of ownership and not a profit-making sale to a third party, the second proviso to section 10(2)(vii) of the Income-tax Act, 1922 did not apply, and the excess over written-down value was not taxable under that provision. en-us Mon, 24 Mar 1958 00:00:00 +0530 Tue, 10 Mar 2015 16:20:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=168507 The article explains that, in taxing statutes, the term "sale" is construed by its real commercial substance rather than its formal legal shape. A transfer of assets by a firm to a newly formed private company with the same persons behind both entities was treated as a restructuring of the same business ownership, not a genuine commercial sale. Because the transaction was a readjustment of ownership and not a profit-making sale to a third party, the second proviso to section 10(2)(vii) of the Income-tax Act, 1922 did not apply, and the excess over written-down value was not taxable under that provision. Case-Laws Income Tax Mon, 24 Mar 1958 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=168507