https://www.taxtmi.com/caselaws?id=38822 A transfer of leasehold mineral rights from a parent company to its wholly owned subsidiary was treated as a transfer between distinct legal persons, so the surplus was taxable despite the business-readjustment character of the arrangement. The court applied the strict legal form and effect of the transaction, not the economic unity of the group, and held the surplus on transfer of mining rights taxable against the assessee. The same approach applied to plant, machinery and buildings transferred to the subsidiary: excess realised over written down value was assessable, and indirect control through shareholding did not defeat the tax consequence. Both questions were answered against the assessee. en-us Wed, 28 Jan 1976 00:00:00 +0530 Fri, 09 Apr 2010 12:23:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38822 A transfer of leasehold mineral rights from a parent company to its wholly owned subsidiary was treated as a transfer between distinct legal persons, so the surplus was taxable despite the business-readjustment character of the arrangement. The court applied the strict legal form and effect of the transaction, not the economic unity of the group, and held the surplus on transfer of mining rights taxable against the assessee. The same approach applied to plant, machinery and buildings transferred to the subsidiary: excess realised over written down value was assessable, and indirect control through shareholding did not defeat the tax consequence. Both questions were answered against the assessee. Case-Laws Income Tax Wed, 28 Jan 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38822