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1960 (3) TMI 3 - SC - Income TaxWhether the sale of the shares and securities by the administrator of the estate of late Mr. Gannon is not a sale for the purposes of section 12B(1) in view of the third proviso to section 12B(1) of the Indian Income-tax Act? Held that:- It is necessary to point out here that on the interpretation sought to be placed on the third proviso on behalf of the appellant, the administrator will escape paying tax if he sells the capital assets ; but the legatee will not escape if he sells the capital assets after having received them in specie from the administrator. This is an anomaly which is against the scheme of section 12B of the Act. We are accordingly of the view that the High Court rightly hold that the expression " distribution of capital assets " in the third proviso to sub-section (1) of section 12B of the Act means distribution in specie and not distribution of sale proceeds. Appeal dismissed.
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