Upon conversion of a private limited company into assessee-LLP entire undertaking of erstwhile company got vested into assessee LLP, no separate cost other than ‘book value’ would be attributable to individual assets and liabilities, hence such ‘book value’ could only be regarded as full value of consideration for purpose of computation of capital gain ( ITA No. 3637/Mum/2015 & C.O No.2/Mum/2016, dt. 16.11.2018) .( AY.2010 -11)
ACIT v. Celerity Power LLP (2019) 174 ITD 433/197 TTJ 45/ 174 DTR 68 (Mum) (Trib.) www.itatonline.org
S. 48 : Capital gains – Computation – Full value of consideration – Conversion of a private limited company into assessee-LLP -Book value – Book value was to be regarded as full value of consideration for purpose of computation of capital gains .[ S.45 , 47 ]