sir,
i am working in a state electricity board. as a first step to corporatise
the board, the assets and liabilities are taken over by the state government
at the value appears in the latest balance sheet of board.  the board has
never revalued the assets since its formation, that means the asset value
doesnot reflect the actual 'revenue earning ' potential of the assets. the
government plans to handover the assets and liabilities of board to a newly
formed company registered under companies act,1956.

my question are as follows
1. whether the government can make revaluation of assets?
2. if yes, whether capital gain tax is applicable to government as transfer
to new company amounts to sale?
3. General question - are state governments  liable to pay income tax and
other central goverment taxes?

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