https://www.taxtmi.com/caselaws?id=367309 The High Court of Karnataka interpreted the provisions of Section 47 (xiii) Proviso (b) read with Section 47A of the Income Tax Act in a case involving the timing of allotment of shares to partners of a partnership firm in a business succession to a limited company. The court held that the delay of 3 to 4 years in allotting shares was unreasonable, leading to the successor company being liable for capital gains tax. The court ruled in favor of the Revenue, emphasizing that shares must be allotted before the end of the relevant previous year. In a related matter, reassessment proceedings for Assessment Year 2000-01 were allowed to proceed based on the court's interpretation. en-us Mon, 23 Jul 2018 00:00:00 +0530 Tue, 18 Sep 2018 14:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=367309 The High Court of Karnataka interpreted the provisions of Section 47 (xiii) Proviso (b) read with Section 47A of the Income Tax Act in a case involving the timing of allotment of shares to partners of a partnership firm in a business succession to a limited company. The court held that the delay of 3 to 4 years in allotting shares was unreasonable, leading to the successor company being liable for capital gains tax. The court ruled in favor of the Revenue, emphasizing that shares must be allotted before the end of the relevant previous year. In a related matter, reassessment proceedings for Assessment Year 2000-01 were allowed to proceed based on the court's interpretation. Case-Laws Income Tax Mon, 23 Jul 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=367309