https://www.taxtmi.com/caselaws?id=168507 Transfer of a firm's assets to a newly formed company controlled by the same persons is not a sale for the second proviso to section 10(2)(vii) where it merely reorganises the same business in a different legal form. Although the firm and company are separate legal entities, tax treatment depends on the transaction's real commercial substance. The provision applies only to a genuine sale involving profit-making in substance; a transferor cannot realise such profit by transferring assets within the same underlying ownership structure. Consequently, excess over written-down value does not become taxable merely because of the restructuring. 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 Transfer of a firm's assets to a newly formed company controlled by the same persons is not a sale for the second proviso to section 10(2)(vii) where it merely reorganises the same business in a different legal form. Although the firm and company are separate legal entities, tax treatment depends on the transaction's real commercial substance. The provision applies only to a genuine sale involving profit-making in substance; a transferor cannot realise such profit by transferring assets within the same underlying ownership structure. Consequently, excess over written-down value does not become taxable merely because of the restructuring. Case-Laws Income Tax Mon, 24 Mar 1958 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=168507