Revaluation of Software in Partnership Not Transfer Under Section 47(xiii); Depreciation Allowed Under Section 32(1) Proviso

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....The ITAT held that the transaction involving revaluation of software in the partnership accounts did not constitute a transfer under section 47(xiii) and thus did not attract capital gains tax, as no real income accrued and no sale or transfer occurred. Consequently, the addition made by the AO was deleted. Regarding depreciation disallowance, the tribunal directed the AO to verify and allow depreciation in accordance with section 32(1) proviso, as the assessee provided requisite details showing depreciation claimed only up to the date of transfer. The reopening of assessment under section 43B was quashed due to lack of valid reasons, contradictions in the reasons recorded, and absence of any escapement of income. The CIT(A)'s confirmation .........