Taxability of capital gain arising from transfer of shares pursuant to the family arrangement.

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....axability of capital gain arising from transfer of shares pursuant to the family arrangement. <br>News and Press Release<br>Dated:- 27-4-2008<br><BR>Facts of the case: There was a transfer of shares ....

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....between the assessee-firm, which consists of partners, who are family members, in that, certain new shares were acquired in exchange of old shares, as also some consideration in cash. According to the....

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.... assessees, the transfer was consequent to a family arrangement. But, the Assessing Officer, after analysing the facts of the case and the legal aspects on the same, concluded that there was indeed a ....

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....transfer involved and thus, subjected the Capital Gains Tax. Issue: Whether the transfer of shares pursuant to the family arrangement to avoid a possible litigation among the family members would at....

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....tract the Capital Gains Tax. Held: In view of the settled propositions of law, we hold that the Tribunal was justified in arriving at the conclusion that the family arrangement among the assessees d....

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....oes not amount to any transfer and hence, not exigible to capital gains tax. (For full text of judgment - visit 2008 -TMI - 3709 - MADRAS HIGH COURT)<BR> News - Press release - PIB....