Cost of acquisition rule clarified: transferee's acquisition cost governs capital gains when transfer is treated as deemed transfer. Where a capital asset transfer is treated as a deemed transfer under the statute, the transferee company's cost of acquisition for that asset shall be the cost at which the transferee actually acquired it, notwithstanding prior cost-computation rules.
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Provisions expressly mentioned in the judgment/order text.
Cost of acquisition rule clarified: transferee's acquisition cost governs capital gains when transfer is treated as deemed transfer.
Where a capital asset transfer is treated as a deemed transfer under the statute, the transferee company's cost of acquisition for that asset shall be the cost at which the transferee actually acquired it, notwithstanding prior cost-computation rules.
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