That in the AY 2016-17, the assessee ‘A’ transferred its one undertaking to ‘B’ in lieu of shares of company ‘B’ and claimed that the trasfer is covered by slump exchange and not slump sale.

However, in the various next year i.e. AY 2017-18, the assessee ‘A’ sold the entire share acquired on account of slump exchange to ‘B’ for sale consideration of a price in terms of money.

From the above, it seems as if the assessee ‘A’ had gone for slump exchange to avoid tax on LTCG. At the end, the assessee received money in next AY as sale consideration for the transfer of that undertaking.

Please advise on the issue and indicate tax implication for both the years.

What shall be the cost of acquisition of shares acquired on account of slump exchange, if we consider capital gain on such shares in AY 2017-18.

Please elaborate.

Thanks