9911796707
TMI Blog1993 (9) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... is preferred against the judgment of the Patna High Court answering the question referred to it in favour of the Revenue and against the assessee. The reference was made at the instance of the Revenue. The question as stated by the Tribunal read as follows : "Whether, on the facts and in the circumstances of the case, the amount of Rs. 34,040 was assessable in the hands of the assessee under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... own value on the said assets and levied the tax. The assessee's contention was that inasmuch as there was no transfer of property and since the income did not arise from any such transfer, no capital gains could be said to have arisen. This plea was negatived by the Income-tax Officer. When the matter ultimately reached the High Court, it ruled against the assessee relying upon the specific provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f section 2 and the sum so arrived at shall be deemed to be the full value of the consideration for the purposes of section 48. " It is sub-section (2) which is particularly relevant in the present case. Even though the income received by the assessee in the liquidation proceedings was not on account of any transfer of property, yet Parliament has chosen to treat such receipt as capital gains, su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 48. (Section 48, it may be noted, specifies the permissible deductions from the full value of the consideration which includes the cost of acquisition of the asset.) Clause (22) in section 2 defines the expression "dividend". Sub-clause (c) thereof specifically includes within the meaning of dividend "any distribution made to the shareholders of a company on its liquidation, to the extent to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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