Section 54 provides for exemption from tax for capital gain arising from the transfer of long-term capital asset (being a residential house), if the assessee has, within a period of one year before or two years after the date on which the transfer took place purchased, or has within a period of three years after […]
TAXABILITY OF DEFERRED CONSIDERATION IN CAPITAL GAINS
Section 45 provides for the charge of tax in respect of capital gains. It provides that any profits or gains arising from the transfer of a capital asset shall be chargeable to income-tax under the head “Capital Gains”, and shall be deemed to be the income of the previous year in which the transfer took […]
CIT v GRACE COLLIS [2001] 115 TAXMAN 326 (SC)
The assessees were shareholders of Ambassador Steamship (P.) Ltd. Ambassador Steamship Pvt. Ltd. (‘the amalgamating company’) was amalgamated with Collis Line Pvt. Ltd. (‘the amalgamated company’). As per the scheme, the members of the amalgamating company, were issued 14 equity shares of Rs. 100 each, credited as fully paid-up, in the amalgamated company for each […]
CIT V CHETAK ENTERPRISES [2020] 115 TAXMANN.COM 108 (SC), (2020) 423 ITR 267 (SC)
The erstwhile partnership firm M/s. Chetak Enterprises entered into an agreement with the Government of Rajasthan for construction of road and collection of road/toll tax. The construction of road was completed by the firm on 27.3.2000 and the same was inaugurated on 1.4.2000. The firm was converted into a private limited company on 28.3.2000 […]
SECTION 47(xiiib) – TAX IMPLICATIONS OF CONVERSION OF COMPANY INTO LLP
Sec 56 of the LLP Act provides for conversion from private limited company into limited liability partnership. Third schedule of the LLP Act deals with procedure and effect of conversion of private limited company into LLP. On conversion, whole of the undertaking of the company shall be transferred to and shall vest in the limited […]