The assessee had transferred his business to a private Limited Company by way of an agreement dated 27-3-2012. All assets and liabilities belonging to assessee, as specified in agreement had been transferred for a consideration of Rs. 2.71 crores.  The assessee claimed that there was no transfer in view of section 47(xiv), hence transaction was not exigible to levy of tax as capital gains. The AO  assessed the total income at Rs. 1.39 crores, inter alia, denying the benefit claimed by the assessee under S.  47 (xiv), in respect of transfer of assets and liabilities of the proprietary concern to a Private Limited Company. Alternatively, the AO computed the income in question under the head Income from other sources, by invoking the provisions of section 56(2)(vii)(c). A sum of Rs. 1.25 crores was brought to tax. CIT (A) confirmed the order of the AO .  On appeal the Appellate Tribunal held that , when the assessee has been allotted certain shares as consideration for property transfer, then the question of value of those shares by invoking S.  56(2)(vii)(c), does not arise.  Appellate Tribunal also held that when a value is fixed for a share allotted, it reflects the market value of asset transferred. It is not the case of the AO that the assessee has not valued the assets while transferring the same to the company. What is to be considered is that this exchange/barter is on a particular date. When the exchange was on 27-3-2012 and when the shares were allotted on 27-3-2012, the AO seeks to value the already allotted 40,000 equity shares at a premium of premium of Rs. 400 per share which gave the company premium of Rs.1.56 crores.This is not permissible. Such method of computation is not laid down under any provision of the Act . Accordingly the addition was deleted.  ( AY. 2012-13)