2011 (7) TMI 378

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....re a shareholder on the liquidation of Company receives an asset from the Company with the liabilities attached to it, then the value of that asset for the purposes of Section 46(2) of the Income Tax Act, 1961 should be taken at the fair market value or at the fair market value as reduced by the liabilities attached to the said asset? 2. According to the Revenue, the expression "full value" in ....

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....ng it to the shareholder to discharge the liabilities attached to that asset. In the present case, the fact that the assets were transferred to the shareholders with liabilities attached to it is not in dispute. The fact that the shareholders have in fact discharged the liabilities attached to the asset is also not in dispute. In these circumstances, the decision of the Tribunal that where an asse....