https://www.taxtmi.com/caselaws?id=6494 The Supreme Court upheld the High Court's decision that the distribution of assets by a company in liquidation to its shareholders does not constitute a transfer attracting capital gains tax. The Court clarified that such distribution recognizes existing legal rights and does not create new rights. It ruled that the amount received by the assessee on liquidation was not taxable as capital gains, as it was not considered a transfer by the company under section 46(1) of the Income-tax Act, 1961. The Court also accepted the assessee's computation of capital gains based on the fair market value of the asset as of January 1, 1954, resulting in a lower taxable amount. en-us Fri, 26 Nov 1976 00:00:00 +0530 Tue, 03 Mar 2015 12:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6494 The Supreme Court upheld the High Court's decision that the distribution of assets by a company in liquidation to its shareholders does not constitute a transfer attracting capital gains tax. The Court clarified that such distribution recognizes existing legal rights and does not create new rights. It ruled that the amount received by the assessee on liquidation was not taxable as capital gains, as it was not considered a transfer by the company under section 46(1) of the Income-tax Act, 1961. The Court also accepted the assessee's computation of capital gains based on the fair market value of the asset as of January 1, 1954, resulting in a lower taxable amount. Case-Laws Income Tax Fri, 26 Nov 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6494