https://www.taxtmi.com/caselaws?id=98591 Distribution of a company's assets by a voluntary liquidator to contributories on winding up was analysed as a statutory adjustment of pre-existing rights, not a conveyance by an owner. On that reasoning, the transaction did not amount to a sale, exchange, relinquishment or transfer within section 12B of the Indian Income-tax Act, 1922, because no new title was created and no beneficial ownership was divested in the relevant sense. Section 12B(3) was read as supporting tax only on a subsequent alienation by the recipient, and taxing the initial distribution would risk double taxation. The distribution was therefore treated as outside capital gains tax under section 12B. en-us Fri, 28 Feb 1969 00:00:00 +0530 Sat, 21 Jan 2012 12:32:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98591 Distribution of a company's assets by a voluntary liquidator to contributories on winding up was analysed as a statutory adjustment of pre-existing rights, not a conveyance by an owner. On that reasoning, the transaction did not amount to a sale, exchange, relinquishment or transfer within section 12B of the Indian Income-tax Act, 1922, because no new title was created and no beneficial ownership was divested in the relevant sense. Section 12B(3) was read as supporting tax only on a subsequent alienation by the recipient, and taxing the initial distribution would risk double taxation. The distribution was therefore treated as outside capital gains tax under section 12B. Case-Laws Companies Law Fri, 28 Feb 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98591