Capital gain- transfer

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Tejas Dhami (Querist)
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12 March 2012 Capital Gain is not Attracted if all the conditions of Sec47(xiii) are satisfied. That is when an existing partnership firm is succeeded by a new company.
But if an already existing partnership firm is merged with an already "EXISTING Company", then will Sec47(xiii) be applicable?
If yes what will be the tax implications?
If no, then what will be the tax implications?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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13 March 2012 Section 47(xiii) reads as under:

Nothing contained in section 45 shall apply to the following transfers:

any transfer of a capital asset or intangible asset by a firm to a company as a result of succession of the firm by a company in the business carried on by the firm

From the above wordings it is clear that the successor company need not be a new company.

The exemption is available even if an existing company takes over the business.

Tejas Dhami

Tejas Dhami (Querist)
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20 March 2012 Thank you so much for the reply.

Tejas Dhami

Tejas Dhami (Querist)
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20 March 2012 But does anyone have an experience of the same? Then please do reply.

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