2014 (12) TMI 1199

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....efore the Apex Court by the Revenue and the Apex Court has remitted the matter back to this Court for a fresh decision on the following substantial questions of law in accordance with law. 1)Whether the Income Tax Appellate Tribunal is right in law and on the facts of the case in holding that revaluation of the assets of the assessee firm and subsequent conversion of the firm into Limited Company under Chapter IX of the Companies Act who has taken over such assets at the enhanced value will not result into any capital gain liability under the IT Act ? 2)Whether the Income Tax Appellate Tribunal is right in law and on facts of the case in holding that there is no transfer involved when the assessee gets itself registered under Para IX ....

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....nd thereafter a notice under Section 143(2) of the Act was issued. After considering the explanation of the respondent-assessee, the Assessing Officer determined the total income of the respondentassessee at Rs. 1,30,07,761/-. The respondentassessee disputed the impugned addition and filed an appeal before the CIT(A) which was dismissed and the addition was confirmed. 4. Being aggrieved, the respondent-assessee filed an appeal before the Tribunal. The Tribunal accepted the appeal and set aside the order of CIT(A) and that of the Assessing Officer. 5. Being aggrieved and dissatisfied with the order of the Tribunal, the Revenue filed the present Tax Appeal before this Court raising the above mentioned substantial questions of law said t....

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....n our view, the judgment of the Bombay High Court squarely covers the facts of the case and the orders passed by the Appellate Commissioner and the Tribunal accords, with the same. The appeal is accordingly dismissed." 7. All these four questions are governed by the below mentioned decisions which are applicable in all force as discussed hereinbelow. 8. Mr. Divetia has also relied on the decision of the Bombay High Court in the case of Commissioner of Income Tax vs. Texspin Engineering and Manufacturing Works, reported in (2003) 263 ITR 345 and the decision of the Punjab & Haryana High Court in the case of Commissioner of Income Tax v. Rita Mechanical Works, reported in [2012] 344 ITR 544 (P&H), which also takes us to take the same vi....