Capital gains, if any, involved in transfer of capital assets on conversion of private limited company to assessee LLP, de hors applicability of S. 47A(4), would not be liable to be assessed in hands of assessee LLP as per S 45 read with S. 5, however, same would be subject to liability of assessee LLP as a successor entity. ( 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. 170 : Succession to business otherwise than on death -Capital gains- Conversion of private Limited company to LLP- de hors applicability of section 47A(4), would be subject to liability of assessee LLP as a successor entity. [ S. 5,45 , 47A(4)]