1981 (11) TMI 73

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... or transferred to Podar Shakti Plastics (P.) Ltd. certain assets (and also certain liabilities). The two companies are hereinafter referred to as "the transferor" and "the transferee", respectively. The name of the transferee was later changed to "Podar Plastics (P.) Ltd." and still later it was changed to "Bombay Household and Industrial Plastics Mfg. Co. (P.) Ltd.". The appeal under consideration relates to the assessment of this company for the assessment year 1975-76 for which the corresponding previous year is the calendar year 1974. 3. As stated earlier, it was in this year that certain assets of the transferor were sold or transferred to the transferee. The value of the assets for the purpose of the transfer, i.e., for settling the price, was determined in accordance with the report of M.E. Panthakey & Co., who are Consulting Engineers and who were required to report the fair market value of the assets in question. The corresponding book value and the written down value for the purpose of assessment to income-tax was much less than the value determined in the valuation report. The relevant particulars are as below:         &nbsp....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nbsp;            36,847.12                             36,847.12              Exhaust fan                                            1,095.00                               4,421.00              Electrical installation                             9,221.24                   &....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....aimed for the purpose of its assessment to income-tax that the original cost was the sum paid by it. 4. However, the ITO and the Commissioner (Appeals) have taken the view that the actual cost of the assets in question may be taken at the amounts represented by the written down values of the respective assets as available from the assessment record of the transferor. The relevant particulars are as below :                  Item                                                                W. D. V.                                                 &nbs....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....p;                                        647              Exhaust fans                                                                  3,567 5. Other points raised in the grounds of appeal having been specifically given up by Shri Doshi at the time of hearing of this appeal, the only question for decision is whether the original cost of the assets in question could be determined for a sum less than the consideration paid by the transferee to the transferor. We have considered the relevant facts and circumstances, the order of the authorities below and the rival submissions. 6. It is common ground that ....