https://www.taxtmi.com/caselaws?id=9044 The second proviso to section 10(2)(vii) of the Indian Income-tax Act, 1922 applies only where building, machinery or plant is sold and the amount realised exceeds the written down value. As a deeming provision in a taxing statute, it must be strictly construed, and the revenue had to prove a sale in the legal sense. Since sale under section 4 of the Sale of Goods Act requires transfer of property by a seller to a buyer for a price, the mere allotment of partnership assets to partners on dissolution was not a sale. The proviso was therefore not attracted, and the transaction was outside its scope. en-us Tue, 10 Aug 1971 00:00:00 +0530 Thu, 18 Jun 2009 19:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9044 The second proviso to section 10(2)(vii) of the Indian Income-tax Act, 1922 applies only where building, machinery or plant is sold and the amount realised exceeds the written down value. As a deeming provision in a taxing statute, it must be strictly construed, and the revenue had to prove a sale in the legal sense. Since sale under section 4 of the Sale of Goods Act requires transfer of property by a seller to a buyer for a price, the mere allotment of partnership assets to partners on dissolution was not a sale. The proviso was therefore not attracted, and the transaction was outside its scope. Case-Laws Income Tax Tue, 10 Aug 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9044