Case Law Details
IT0 Vs. Shri Sanjay Singh (ITAT Delhi)-As entire consideration was shown as share application money and shares were issued against the same and same was continued to be held by the taxpayer for more than 5 years, the condition prescribed in clause (b) of Section 47(xiv) of the Act is also satisfied. Merely because there is a delay in the allotment of shares against the share application money, it cannot be said that there is a violation of clause (b) of Section 47(xiv) of the Act.
The intention of the legislature in providing the conditions is to ensure that in the garb of conversion or succession of a proprietorship into a company, assets are not transferred to persons other than the sole proprietor and facts of the case it is abundantly clear that the assets are not transferred to other persons. Thus, order of the CIT(A) is sustained and revenue’s appeal is dismissed.
INCOME TAX APPELLATE TRIBUNAL DELHI
ITA NO. 202 1/DEL/2008 ASST. YEAR: 2001-02
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I bought land for Rs. 5000/- in 1986. Built a house in 1991 with permission of competent authority in Rs 10 lacs. I have been conducting group tours off and on but economy of the hills is seasonal and reached the age of 65. Uttrakhand Government introduced a special industrial policy for developing far flung areas in Uttrakhand to curb/mitigate the migration of able bodied young people to metros to reverse the money order economy. I applied I was told
(i) people over 60 years of age are NOT given loans by banks!! To get loan I have to form a company!! So much of respect for Senior citizens when a 80 year old PM can run a country!! Waste of experienced human resource?
(ii) So I made a company with Rs 1 lac authorised capital to transfer my business assets to it. My CA told me that
(A) I can only show Rs 5000 (Land purchase price in 1986)
(B) Building cost Rs.10 lacs (Built in 1991)
as unsecured loan to the company
My Property is worth One Crore to day why can I not show this amount of unsecured loan rather than Rs 10 lac when I am not selling my property nor getting benefit or anything else in return except 99% shares in a P Ltd Co?
Does the age of 65 years mean death to commoners and PMship to some special??!!
Even Prime Minister’s Rozgar Yojna says the same when you reach the Bank!!
Can anyone help me get the right answer to this please?
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