Assessee was a shareholder in a company which went into liquidation, and assets were distributed to its shareholders, whereby the Assessee received land owned by the company and sold the same to third parties. Assessee had disclosed the said land as long-term capital asset and declared profit on sale of the same as LTCG. The AO treated the said sale of land as STCG as it was sold within one year by the assessee. Held, Explanation to S. 2(42A) clearly explains that when a person receive a property consequent to liquidation of company, period of holding of asset had to be taken from date of previous owner i.e., the company, so as to determine whether the asset was a short term capital asset or long term capital asset. Since, admittedly, the land was held by the company for more than 36 months, it was correctly treated as a long-term capital asset, and profit therefrom was correctly charged as LTCG. It was further held that as the Assessee received land as a result of the liquidation of the company and disclosed this as a long-term asset and declared profit as LTCG u/s 46(2) same could not result in transfer of any capital asset within the meaning of section 50C of the Act. (AY.  2014-15)