https://www.taxtmi.com/caselaws?id=5605 SC held that, on conversion of a firm into a company with allotment of shares to erstwhile partners, s. 41(2) could not be invoked in the absence of material indicating the specific price attributable to depreciable assets such as plant, machinery and building out of the total consideration. The mere fact that depreciation had been allowed in earlier years did not establish any "excess" of sale price over written-down value so as to trigger balancing charge under s. 41(2). The reliance placed by the HC on its earlier Artex decision was distinguished on facts. The appeal was partly allowed, granting relief to the assessee on the s. 41(2) issue. en-us Tue, 08 Jul 1997 00:00:00 +0530 Tue, 16 Dec 2025 15:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5605 SC held that, on conversion of a firm into a company with allotment of shares to erstwhile partners, s. 41(2) could not be invoked in the absence of material indicating the specific price attributable to depreciable assets such as plant, machinery and building out of the total consideration. The mere fact that depreciation had been allowed in earlier years did not establish any "excess" of sale price over written-down value so as to trigger balancing charge under s. 41(2). The reliance placed by the HC on its earlier Artex decision was distinguished on facts. The appeal was partly allowed, granting relief to the assessee on the s. 41(2) issue. Case-Laws Income Tax Tue, 08 Jul 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5605