|DATE:||(Date of pronouncement)|
|DATE:||November 9, 2008 (Date of publication)|
Where (pre s. 50B), the assessee’s banking undertaking was transferred by nationalization and it received compensation calculated on the basis of capitalization of last 5 years profits and the question arose whether the said compensation was assessable as capital gains, HELD
As the undertaking was transferred as a going concern and there was no evidence on record to show that the compensation had been arrived at on an item-wise allocation of the various assets of the undertaking and there was no “cost of acquisition” of the undertaking, capital gains was not chargeable.
Note: See Avaya Global Connect vs. ACIT (1.2 MB) (ITAT Mumbai) where despite s. 50B, it was held that the gains are NOT chargeable.