DY C I T Vs. WELL PACK PACKAGING

JUDGEMENT

(1.) BY way of this appeal, the appellant has challenged the judgment and order dated 22.5.2001 passed by the Income Tax Appellate Tribunal, Ahmedabad Bench 'B' in ITA No. 235/Ahd/2001 for AY 1995 -96.

(2.) AT the out set, it is to be noted that this Court has dismissed the appeal at the threshold and the matter was carried before the Apex Court by the Revenue and the Apex Court has remitted the matter back to this Court for a fresh decision on the following substantial questions of law in accordance with law.

(3.) THE facts of the present case are that the respondent -assessee was a partnership firm. On 30th August, 1995, it filed its original return of income in respect of Assessment Year 1995 -96 declaring total income of Rs.1,93,930/ -. The said return was processed under Section 143(1)(a) of the Income Tax Act,1961 on 29th January, 1996. Subsequently, the Assessing Officer noticed that the assessee had revalued the depreciable assets and enhanced the value at Rs. 1,28,13,831/ - on 31st July, 1994. it was also noticed by him that the partnership firm was converted into a company under Chapter IX of the Companies Act 1956 and was registered as such under Section 567 of the said Act on 17th October, 1994. It was further observed that while the respondent -assessee had claimed deprecation value of the depreciated assets available on enhancement of the amount of revaluation on the date of conversion as capital gain though there was a transfer of assets from the partnership firm in the hands of the company which is a separate entity. Thereafter, proceedings under Section 148 of the Act for reassessment were initiated and thereafter a notice under Section 143(2) of the Act was issued. After considering the explanation of the respondent -assessee, the Assessing Officer determined the total income of the respondentassessee at Rs. 1,30,07,761/ -. The respondentassessee disputed the impugned addition and filed an appeal before the CIT(A) which was dismissed and the addition was confirmed.