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

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..... Taxability of capital gain arising from transfer of shares pursuant to the family arrangement.
News and Press Release
Dated:- 27-4-2008

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 th .....

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..... e 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 a .....

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..... ttract 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 .....

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..... does 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)
News - Press release - PIB .....

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