45(3) v/s 50c

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 January 2014 A company transfers an immovable property at its Book Value to a firm as capital contribution .

In this case how will the capital gains be calculated in case of the company?

Should Book value be considered as Full Value of Consideration as per sec 45(3)

or

Stamp Duty Value will prevail( if higher than Book Value) as Full Value of consideration as per section 50C.

If Sec 45(3) applies, any supporting case law available for it?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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02 January 2014 If the transferred property is a 'business asset' of the company, 50C can't be applied vide Madras high court decision reported in 320 ITR 345.

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