Conversion of Private Limited company into LLP to be treated as transfer or not

ACIT Vs Celerity Power LLP (ITAT Mumbai) Conclusion: Assessee LLP had failed to satisfy clause (e) of the proviso of Sec. 47(xiiib), therefore, the ‘transfer‘of the capital assets on the conversion of the private limited company into a LLP was to be regarded as a ‘transfer‘within the meaning of Sec. 45 and also, there was no occasion for invoking the provisions of Sec. 47A(4). And “Capital gains”, if any, involved in the transfer of the capital assets on conversion would liable to be assessed in the hands of the assessee LLP (as a successor entity) under Sec. 170(2). Howeve...