Where the assessee received an immovable property on liquidation of a company consequent to extinguishment of shareholding rights (transaction-1) and sold such property in the very same financial year (transaction-2), both provisions relating to cost of acquisition under s. 49(1)(iii)(c) and determination of cost under s. 55(2)(b)(iii) were simultaneously attracted. The Tribunal, though accepting the legal position canvassed by the assessee, decided the issue against the assessee solely on the ground that earlier coordinate Bench decisions in cases of other assessees were adverse, instead of referring the matter to a Larger Bench. The High Court held that such an approach was incorrect and affirmed that computation of capital gains must necessarily take into account both stages of the transaction, namely receipt of asset on liquidation and its subsequent sale, as reflected in computation-4 adopted by the assessee. Accordingly, the methodology of computation accepted by the assessee was held to be correct and the order of the Tribunal was set aside. (AY. 1991-92).<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 49 : Capital gains\u2014Previous owner\u2014Cost of acquisition\u2014Sale of asset received on liquidation of company\u2014Asset received on liquidation and sold in same year\u2014Both ss. 49(1)(iii)(c) and 55(2)(b)(iii) applicable\u2014Proper computation to consider both transactions-The Tribunal, though accepting the legal position canvassed by the assessee, decided the issue against the assessee solely on the ground that earlier coordinate Bench decisions in cases of other assessees were adverse, instead of referring the matter to a Larger Bench. The High Court held that such an approach was incorrect-Order of Tribunal set aside and assessee\u2019s method upheld. [S. 45, 46(2), 48, 49(1)(iii)(c), 55(2)(b)(iii), 254(1),]<\/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-58650","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-ffY","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/58650","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=58650"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/58650\/revisions"}],"predecessor-version":[{"id":58651,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/58650\/revisions\/58651"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=58650"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=58650"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=58650"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}