Political contribution deductions require assessee-specific proof before cash-back allegations can justify disallowance or unexplained-money additions...
The Income Tax Appellate Tribunal (ITAT) held that when an assessee receives property consequent to the liquidation of a company, the period of holding the asset is calculated from the date the previous owner (the company) held it, as per Explanation 1 to Section 2(42A) of the Income Tax Act. Therefore, the gain on the subsequent sale of the land received from the liquidated company was rightly treated as long-term capital gain by the assessee. Additionally, the provisions of Section 50C, which deal with deeming the stamp duty value as full consideration for transfer, were held inapplicable as the assessee did not transfer any capital asset but received the land on distribution of assets upon the company's liquidation, which is not considered a transfer u/s 46(1).
The Income Tax Appellate Tribunal (ITAT) held that when an assessee receives property consequent to the liquidation of a company, the period of holding the asset is calculated from the date the previous owner (the company) held it, as per Explanation 1 to Section 2(42A) of the Income Tax Act. Therefore, the gain on the subsequent sale of the land received from the liquidated company was rightly treated as long-term capital gain by the assessee. Additionally, the provisions of Section 50C, which deal with deeming the stamp duty value as full consideration for transfer, were held inapplicable as the assessee did not transfer any capital asset but received the land on distribution of assets upon the company's liquidation, which is not considered a transfer u/s 46(1).
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