https://www.taxtmi.com/caselaws?id=169534 A statutory takeover of management of a life insurance business did not, by itself, divest the insurer of carrying on the business; the income for the relevant period remained assessable as business income because management had shifted without transfer of the business itself. A compulsory vesting by operation of law was treated as a transfer for capital gains purposes, but the transfer was held to occur when the Life Insurance Corporation came into existence and the statutory vesting provision became operative, not on the earlier management takeover date. For fair market value, the valuation was to reflect the real commercial position, so the actual surplus attributable to shareholders was accepted rather than a capped compensation formula meant for another purpose. en-us Mon, 15 Nov 1965 00:00:00 +0530 Sat, 25 Apr 2015 10:42:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=169534 A statutory takeover of management of a life insurance business did not, by itself, divest the insurer of carrying on the business; the income for the relevant period remained assessable as business income because management had shifted without transfer of the business itself. A compulsory vesting by operation of law was treated as a transfer for capital gains purposes, but the transfer was held to occur when the Life Insurance Corporation came into existence and the statutory vesting provision became operative, not on the earlier management takeover date. For fair market value, the valuation was to reflect the real commercial position, so the actual surplus attributable to shareholders was accepted rather than a capped compensation formula meant for another purpose. Case-Laws Income Tax Mon, 15 Nov 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=169534