https://www.taxtmi.com/caselaws?id=39763 In a scheme of amalgamation, the surrender of shares in the amalgamating companies in return for shares in the amalgamated company was treated as a transfer of capital assets under section 12B of the Indian Income-tax Act, 1922. The court held that the transaction was not a mere fresh issue of shares detached from the existing holdings; the shareholder parted with its pre-existing shares under the scheme, and that relinquishment amounted to a transfer for capital gains purposes. The fact that the amalgamating companies ceased to exist by operation of law did not prevent the transaction from falling within the statutory concept of transfer. en-us Wed, 10 Apr 1974 00:00:00 +0530 Tue, 20 Apr 2010 11:52:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39763 In a scheme of amalgamation, the surrender of shares in the amalgamating companies in return for shares in the amalgamated company was treated as a transfer of capital assets under section 12B of the Indian Income-tax Act, 1922. The court held that the transaction was not a mere fresh issue of shares detached from the existing holdings; the shareholder parted with its pre-existing shares under the scheme, and that relinquishment amounted to a transfer for capital gains purposes. The fact that the amalgamating companies ceased to exist by operation of law did not prevent the transaction from falling within the statutory concept of transfer. Case-Laws Income Tax Wed, 10 Apr 1974 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39763