AO can’t replace actual cost of an asset with any other value without satisfaction under Explanation-3 to S. 43(1)

Undisputedly, through MOU dated 12th day of October-2002 the assigner, i.e.M/s.Prakash Chemical Agencies, a Registered firm has transferred all its assets and liabilities to assignee, i.e. Prakash Chemicals Agencies Pvt.Ltd. Co. (the assessee-company) and the assignee has taken over all the liabilities as well and agreed to transfer a consideration of Rs.4 lacs, plus the shares in the name of the partners of the said erstwhile firm. The controversy was that the WDV as per the books of accounts of the firm drawn as on 11.10.2002 were at Rs.19,84,311/-. On the nex

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