Sir,Ads per section 47, of Income Tax Act, In the below mentioned case,there is no capital gain(xiii) Where a firm is succeeded by a company in the business carried on by it as a result of which the firm sells or otherwise transfers any capital asset or intangible asset to the company :Provided that - (a) All the assets and liabilities of the firm relating to the business immediately before the succession become the assets and liabilities of the company;(b) All the partners of the firm immediately before the succession become the shareholders of the company in the same proportion in which their capital accounts stood in the books of the firm on the date of succession;(c) The partners of the firm do not receive any consideration or benefit, directly or indirectly, in any form or manner, other than by way of allotment of shares in the company; and(d) The aggregate of the shareholding in the company of the partners of the firm is not less than fifty per cent of the total voting power in the company and their share holding continues to be as such for a period of five years from the date of the successionMy query is thatwould the existing firm transfer its assets to company formed as a result of conversion of firm into new company carried on same business?orwould the existing firm transfer its assets to any existing company carried on same business ?
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