https://www.taxtmi.com/caselaws?id=212545 The Tribunal upheld the CIT(A)'s decision to allow the exemption under Section 47(xiv) for long-term capital gain. It was determined that the conditions for exemption were met as all assets and liabilities were transferred to the company, the sole proprietor received shares as consideration, and despite a delay in share allotment, the sole proprietor held nearly 99% of the shares, surpassing the required 50%. The Tribunal emphasized the legislative intent to prevent asset transfers to others to avoid capital gains tax, noting that in this case, the assets remained with the company where the sole proprietor held a significant majority of shares. en-us Fri, 18 Nov 2011 00:00:00 +0530 Tue, 20 Nov 2012 16:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=212545 The Tribunal upheld the CIT(A)'s decision to allow the exemption under Section 47(xiv) for long-term capital gain. It was determined that the conditions for exemption were met as all assets and liabilities were transferred to the company, the sole proprietor received shares as consideration, and despite a delay in share allotment, the sole proprietor held nearly 99% of the shares, surpassing the required 50%. The Tribunal emphasized the legislative intent to prevent asset transfers to others to avoid capital gains tax, noting that in this case, the assets remained with the company where the sole proprietor held a significant majority of shares. Case-Laws Income Tax Fri, 18 Nov 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=212545