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TMI Blog2008 (4) TMI 241X X X X Extracts X X X X X X X X Extracts X X X X ..... of foreign company from which the property was transferred to assessee under the scheme - assessee will not be entitled to contend that the acquisition of land by them did not involve any cost to them – remand the matter to the AO for fresh consideration after verifying the terms of amalgamation approved by the HC X X X X Extracts X X X X X X X X Extracts X X X X ..... 77 the High Court approved a scheme of amalgamation whereunder the landed properties of the British company namely, the amalgamating company was transferred to the petitioner which is an Indian company. During the previous years relevant for assessment years 1990-91 and 1991-92, Government of Kerala acquired some extent of land from the company and paid compensation. The company did not offer the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd, there was no cost of acquisition and so much so, capital gain does not arise. He has relied on various court decisions including that of the Supreme Court in support of his contention that capital gain does not arise in a case where there is no cost involved in the acquisition of property. Senior counsel for the Revenue on the other hand contended that by virtue of Section 55(2), the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n company, then the transfer of property to the appellant-company is against consideration in the form of value of shares allotted to the shareholders of the amalgamating company. Share capital is a liability of the company to the shareholders and so much so, value of shares allotted constitute value of the property acquired by the company in the course of amalgamation. So much so, we are of the v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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