Held\u00a0 that the\u00a0Transfer of Property Act, 1882\u00a0considers a company not only as a person but literally speaking as a living person a person with life. The same expression person in section\u00a05\u00a0is transplanted in section\u00a0122\u00a0of the 1882 Act, which defines a \u201cgift\u201c. A cogent reading of sections\u00a05\u00a0and\u00a0122\u00a0of the 1882 Act makes it clear that a company being a \u201cliving person\u201d can transfer property by way of gift to another company. Further section\u00a0122\u00a0of that Act does not prescribe any attributes like \u201clove and affection\u201d. There is no restriction in law against a company making a gift of its property to another company. A transfer without consideration when claimed as a gift is always a gift. Further section\u00a047(iii)\u00a0of the Act, specifically provides that any transfer of a capital asset under a gift is not regarded as a transfer. Therefore the transfer of plots by the assessee-company by way of executing gift deed in favour of R Ltd., was a valid gift and not liable for capital gains tax. Consequently the question of invoking the provisions of section\u00a050C\u00a0of the Act did not arise. There was no infirmity in the order passed by the Commissioner (Appeals). Relied on \u00a0DP World P. Ltd. v. DY. CIT(2014) 162 TTJ 446 (Mum)(Trib)\u00a0 Redington (India) Ltd. v. JT. CIT [2014)40 CCH 527 (Chennai) and DY. CIT v. KDA Enterprises P. Ltd(2015) 39 ITR 657\/ 171 TTJ 1(Mum)(Trib)\u00a0 \u00a0(AY.2013-14)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 47(iii) : Capital gains-Transaction not regarded as transfer-Gift-Company-Living Person capable of making gift-No attributes like love and affection is prescribed-Transfer of plots by Assessee by way of gift deed in favour of another company is valid gift-Not liable for capital gains tax-Person-Living Person. [S. 45,50C, Transfer of Property Act, 1882, S. 5, 122] <\/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-50285","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-d53","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50285","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=50285"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50285\/revisions"}],"predecessor-version":[{"id":50286,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50285\/revisions\/50286"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=50285"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=50285"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=50285"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}