2017 (8) TMI 192

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....R P. C. 1 The present appeal pertains to Assessment Year 2008-09. 2 The learned counsel for the appellant submits that the Assessing Officer and the Commissioner (Appeals) had rightly come to the conclusion that the revaluation of the satellite rights in the account of the partners interse would give rise to capital gains. The satellite rights were the property of partnership till the date of t....

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....any realization of assets. There is no dissolution of the firm nor distribution of assets of the firm amongst the partners. No transfer of assets has taken place. It is further observed that the partnership firm was converted into a private limited company and the satellite rights thereafter vests with the company. The revaluation of the assets by the partnership firm would not attract any capital....

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....such vesting stands covered by the expression "transfer by way of distribution" in Section 45(4) of the Act. There is a difference between vesting of the property, in this case, in the Limited Company and distribution of the property. On vesting in the Limited Company under Part IX of the Companies Act, the properties vest in the company as they exist. On the other hand, distribution on dissolutio....