Non-transfer treatment for capital assets in banking amalgamation preserves prior cost basis and holding period. Section 47(viaa) provides that transfer of any capital asset under an amalgamation of a banking company with a banking institution is not regarded as a transfer for capital gains; the transferee inherits the cost of the previous owner and the previous owner's period of holding is to be considered in computing the transferee's period of holding.
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Provisions expressly mentioned in the judgment/order text.
Non-transfer treatment for capital assets in banking amalgamation preserves prior cost basis and holding period.
Section 47(viaa) provides that transfer of any capital asset under an amalgamation of a banking company with a banking institution is not regarded as a transfer for capital gains; the transferee inherits the cost of the previous owner and the previous owner's period of holding is to be considered in computing the transferee's period of holding.
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