https://www.taxtmi.com/caselaws?id=784735 Section 47(vii) applies only where the original shares were held as capital assets; if held as stock-in-trade, the exemption is inapplicable and taxability falls for consideration under Section 28. Under Section 28, substitution of trading stock by shares on amalgamation constitutes a receipt in kind, but a taxable business profit arises only on allotment of the new shares and only if they confer a real, presently realisable commercial advantage with ascertainable value; mere statutory vesting or hypothetical accretion is insufficient, and the burden lies on the Revenue. The SC affirmed, in principle, that such receipt can be taxable business income, and remitted the factual application to the Tribunal. en-us Fri, 09 Jan 2026 00:00:00 +0530 Tue, 10 Mar 2026 14:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=784735 Section 47(vii) applies only where the original shares were held as capital assets; if held as stock-in-trade, the exemption is inapplicable and taxability falls for consideration under Section 28. Under Section 28, substitution of trading stock by shares on amalgamation constitutes a receipt in kind, but a taxable business profit arises only on allotment of the new shares and only if they confer a real, presently realisable commercial advantage with ascertainable value; mere statutory vesting or hypothetical accretion is insufficient, and the burden lies on the Revenue. The SC affirmed, in principle, that such receipt can be taxable business income, and remitted the factual application to the Tribunal. Case-Laws Income Tax Fri, 09 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=784735