1979 (6) TMI 129

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....urt was delivered by SETHURAMAN J.-This reference is at the instance of the Commissioner of Income-tax, Tamil Nadu IV, Madras, and is under s. 256(1) of the I.T. Act. The following question has been referred : " Whether, on the facts and in the circumstances of the case, it has been rightly held that there was no transfer of assets in the assessee's case within the meaning of section 2(47....

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....value. He took the (market) value of the buses at Rs. 3,00,000 as against the book value of Rs. 2,46,260 for which the buses had been taken over by the firm. This difference of Rs. 53,740 was brought under the head " Capital gains ". In addition, the route permits were valued at Rs. 1,00,000 and this amount was also brought under the head " Capital gains ". The total capital gains thus arrived at ....

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.... a partnership with another. In addition to the capital contributed by each partner, the capital account of the assessee was credited with a further sum of Rs. 15,000 being the agreed value of three lorries owned by the assessee and taken over by the firm. As the written down value of the lorries was only Rs. 2,558, the ITO treated the difference of Rs. 12,442 as profit of the assessee under s. 10....

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....which applied to profit under s. 41(2), which corresponds to s. 10(2)(vii) of the 1922 Act. Section 45 of the Act of 1961 envisages levy of tax on profits and gains arising from the transfer of a capital asset effected in the previous year. The expression " transfer " has been defined in section 2(47) of the I.T. Act, and it runs as follows: " `Transfer', in relation to a capital asset, include....