https://www.taxtmi.com/caselaws?id=276355 A transfer of buses by an association of persons to a newly formed private limited company, owned entirely by the same members, was treated as a mere readjustment of business structure rather than a commercial sale for tax purposes. Although the company was a separate legal entity and the transfer was a sale in the strict legal sense, the taxing provision required a real vendor-vendee transaction. As the same persons continued the same business through another form, the second proviso to Section 10(2)(vii) of the Indian Income-tax Act, 1922 did not apply, and the amount was not assessable under that provision. en-us Mon, 18 Feb 1963 00:00:00 +0530 Thu, 08 Nov 2018 10:45:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276355 A transfer of buses by an association of persons to a newly formed private limited company, owned entirely by the same members, was treated as a mere readjustment of business structure rather than a commercial sale for tax purposes. Although the company was a separate legal entity and the transfer was a sale in the strict legal sense, the taxing provision required a real vendor-vendee transaction. As the same persons continued the same business through another form, the second proviso to Section 10(2)(vii) of the Indian Income-tax Act, 1922 did not apply, and the amount was not assessable under that provision. Case-Laws Income Tax Mon, 18 Feb 1963 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276355