Existing liability under section 230A excludes capital gains from proposed transfers, so certificates cannot factor anticipated gains. The instruction explains that existing liability for certificate issuance includes ascertained taxes and taxes already accrued under a chargeable provision (such as estimated wealth-tax pending assessment), but explicitly excludes liability to capital gains arising from a proposed transfer; Income-tax Officers therefore must not treat anticipated capital gains tax on a proposed sale as an existing liability when issuing the certificate.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Existing liability under section 230A excludes capital gains from proposed transfers, so certificates cannot factor anticipated gains.
The instruction explains that existing liability for certificate issuance includes ascertained taxes and taxes already accrued under a chargeable provision (such as estimated wealth-tax pending assessment), but explicitly excludes liability to capital gains arising from a proposed transfer; Income-tax Officers therefore must not treat anticipated capital gains tax on a proposed sale as an existing liability when issuing the certificate.
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