2017 (9) TMI 1236

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... of the stock and transfer the same at a price less than the market value, if so whether the tax can be levied on notional profits or on actual profits? iii) Whether the principles of assessing the value of the stock of a dissolved firm for assessing the mutual adjustment of partner's shares can be applied to a running company?. 2. The facts giving rise to the filing of this appeal briefly stated are that there was a change in the Management and Shareholdings of the Company. M/s Janki Motor Pvt. Ltd. was having dealership rights for sale of vehicles etc. of Maruti Udyog Ltd. In the aforesaid company, one Krishan Kumar and Ushal Amla were the shareholders and Directors having 4 lacs equity shares of Rs. 10 per share. By an agreemen....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... addition to Rs. 40 lacs amount on account of short term capital gains by Assessing Officer, which was withdrawn. Commissioner of Income Tax (Appeals) allowed the appeal. Being aggrieved the Revenue approached the Income Tax Appellate Tribunal. The Tribunal set aside the order passed by the Commissioner of Income Tax (Appeals) and restored the order of the Assessing Officer. In the aforesaid factual background, this appeal has been filed. 4. Learned counsel for the appellant submitted that principle which is to be applied while dissolving the firm cannot be applied to continue the Company. It is further submitted that the Tribunal has failed to appreciate that the decision of the Supreme Court in the case of A.L.A. Firm vs. C.I.T 189 ITR....