Section 13 - Insertion of new section 47A - Taxation Laws (Amendment) Act, 1984

13. Insertion of new section 47A. After section 47 of the Income-tax Act, the following section shall be inserted, namely: 47A. Withdrawal of exemption in certain cases. Where at any time before the expiry of a period of eight years from the date of the transfer of a capital asset referred to in clause (iv) or, as the case may be, clause (v) of section 47, (i) such capital asset is converted by the transferee company into, or is treated by it as, stock-in-trade of its business; or (ii) the parent company or its nominees or, as the case may be, the holding company ceases or cease to hold the whole of the share capital of the subsidiary company, the amount of profits or gains arising from the transfer of such capital asset not charged under section 45 by virtue of the provisions contained in clause (iv) or, as the case may be, clause (v) of section 47 shall, notwithstanding anything contained in the said clauses, be deemed to be income chargeable under the head Capital gains of the previous year in which such transfer took place. .