The assessee individual along with other family members was holding shares in a company NPIL under family business group. Due to dispute in functioning of company NPIL and other group concerns, in order to restore the peace and harmony in family, all family members agreed to family arrangement by filing petition before CLB. Based on direction of CLB, the assessee transferred shares of NPIL to another group company under a buy back agreement. The assessee claimed that Long-Term Capital Gain (LTCG) arose from sale of shares was not taxable. The Assessing Officer rejected the claim of assessee and held \u00a0that the transaction of selling of shares of the \u00a0Natar Parikli Co. Ltd. (NPCL) \u00a0by the assessee could not be termed as family arrangement and the same was exit of the large stakeholder\/director from the company which was taxable as LTCG.CIT(A) affirmed the order of the AO. On appeal the Tribunal held that\u00a0 there is no doubt that there is a family arrangement and based the condition specified in the order passed by CLB, the shares were transferred to the company on the buyback terms. Partition or family settlement is not transfer. When there is no transfer there is no capital gain and consequently no tax on capital gain is liable to be paid. In the given case, the assessee has transferred the shares based on the family settlement as per the direction of CLB . Accordingly the Tribunal directed the \u00a0Assessing Officer to allow the claim of the assessee even though the assessee has paid the tax by calculating the capital gain under mistaken belief that this transaction is taxable. Relied on\u00a0 Ram Char-in Das\u00a0v.\u00a0Girja Nandini Devi\u00a0[AIR 1966 SC 3231, Kale\u00a0v.\u00a0Deputy Director of Consolidation, MIR 1976 SC 8071, Mrs. P. Sheela\u00a0v.\u00a0Income-tax officer\u00a0120091 308 ITR (A, T,) 350( Bang )( Trib) , CIT v.\u00a0R. Nagaraja Rao\u00a0 ( 2013)\u00a0 352 ITR 565 ( Karn)( HC) \u00a0( AY. 2007 -08 )<\/p>\n
\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 45 : Capital gains -Transfer \u2013 Family arrangement \u2013 Sale \/Transfer of shares under family agreement as per the directions of CLB (Company law Board ) \u2013 Not chargeable to capital gains tax [ S. 2(47) ] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-32754","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-8wi","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/32754","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=32754"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/32754\/revisions"}],"predecessor-version":[{"id":32755,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/32754\/revisions\/32755"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=32754"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=32754"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=32754"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}