https://www.taxtmi.com/caselaws?id=395045 Genuineness and tax effect of a debt assignment must be tested on the facts existing on the date of transfer; later events do not, by themselves, make a valid commercial assignment a sham. On the Automobile Products debt, the record did not conclusively establish when liability shifted from the original debtor, so the factual position required verification and the matter was remitted for fresh adjudication. On the MCC Finance debt, the assignment was made while the debtor was under liquidation, and subsequent allotment of shares or later associations did not displace the character of the transfer as a genuine commercial arrangement. The capital loss on that assignment was therefore upheld. en-us Fri, 28 Feb 2020 00:00:00 +0530 Mon, 04 May 2020 12:42:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=395045 Genuineness and tax effect of a debt assignment must be tested on the facts existing on the date of transfer; later events do not, by themselves, make a valid commercial assignment a sham. On the Automobile Products debt, the record did not conclusively establish when liability shifted from the original debtor, so the factual position required verification and the matter was remitted for fresh adjudication. On the MCC Finance debt, the assignment was made while the debtor was under liquidation, and subsequent allotment of shares or later associations did not displace the character of the transfer as a genuine commercial arrangement. The capital loss on that assignment was therefore upheld. Case-Laws Income Tax Fri, 28 Feb 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=395045