The AO cannot convert the part of liability transferred as loan by the proprietorship concern into consideration or part thereof

RELEVANT PARAGRAPH 10. We have heard the rival submissions and perused the material available on record. In terms of provisions of section 47 (xiv) of the Act I any transfer of a capital asset will not be regarded as transfer liable to capital gains tax, if the conditions under Clauses (a),'(b) & (c) of the said Section are complied with. Sub-clause(a) specifies that all assets and liabilities have to be transferred by the sole proprietary concern to the company. This is what has been done In the instant case. The liabilities of the proprietary concern have been taken as including the amou...