Dismissing the appeal of the Revenue the Court held that the, assessee had produced copies of partner’s capital and current accounts together with their audited accounts as also furnished details of fixed assets during original assessment proceeding and Assessing Officer had accepted that revaluation amount was not income or taxable and no addition was made in original assessment order. Court also held that the Tribunal held  that there was no distribution of assets but only taking over of firm by company and as such there was no transfer of capital assets as contemplated in section 45(1) or section 45(4)  and  on facts found that no profit on account of revaluation had accrued or arisen to assessee firm and revaluation of fixed asset did not give any profit to firm. Order of Tribunal  quashing the reassessment was affirmed. (AY. 2008-09, 2009-10)