https://www.taxtmi.com/caselaws?id=6397 Distribution of a company's assets by a liquidator on voluntary liquidation does not amount to a sale, exchange, relinquishment or transfer of a capital asset under section 12B of the Indian Income-tax Act, 1922. The liquidator merely recognises shareholders' pre-existing rights to receive their share in the net assets; the money received is therefore in satisfaction of those rights, not consideration for a taxable transfer. The earlier proviso was treated as clarificatory and incapable of enlarging the charging provision, while the later express charge in section 46 of the 1961 Act was regarded as a distinct enactment and not a basis for liability under the 1922 Act. en-us Fri, 09 Mar 1973 00:00:00 +0530 Thu, 04 Dec 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6397 Distribution of a company's assets by a liquidator on voluntary liquidation does not amount to a sale, exchange, relinquishment or transfer of a capital asset under section 12B of the Indian Income-tax Act, 1922. The liquidator merely recognises shareholders' pre-existing rights to receive their share in the net assets; the money received is therefore in satisfaction of those rights, not consideration for a taxable transfer. The earlier proviso was treated as clarificatory and incapable of enlarging the charging provision, while the later express charge in section 46 of the 1961 Act was regarded as a distinct enactment and not a basis for liability under the 1922 Act. Case-Laws Income Tax Fri, 09 Mar 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6397