https://www.taxtmi.com/caselaws?id=19104 The court upheld the method of computing capital gains based on the reduced value of shares received by shareholders in lieu of reduced share capital. It determined that the book value of assets at the time of transfer should be considered for valuation, rejecting the argument for using market value. The judgment clarified that transferring assets from a company to shareholders in exchange for reduced share capital triggers capital gains tax. Relying on precedents, the court ruled in favor of the Revenue, affirming the assessment method adopted by the authorities and denying the assessees' contentions. en-us Wed, 07 Sep 1994 00:00:00 +0530 Tue, 21 Feb 2012 17:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19104 The court upheld the method of computing capital gains based on the reduced value of shares received by shareholders in lieu of reduced share capital. It determined that the book value of assets at the time of transfer should be considered for valuation, rejecting the argument for using market value. The judgment clarified that transferring assets from a company to shareholders in exchange for reduced share capital triggers capital gains tax. Relying on precedents, the court ruled in favor of the Revenue, affirming the assessment method adopted by the authorities and denying the assessees' contentions. Case-Laws Income Tax Wed, 07 Sep 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19104