Members please help !!!

Amendmend in Section 2 (14) – Capital Asset – Explanation inserted wref 1.4.62

“property” includes and shall be deemed to have always included any rights in or in

relation to an Indian Company, including rights of management or control or any other

rights whatsoever.

Can it therefore be argued then when a shareholder having controlling interest in a

company transfers his controlling stake, there are two transfers? i.e. transfer of shares

and transfer of controlling interest.

If yes, what is cost of acquisition thereof?

Whether the AO can apportion the consideration between shares and controlling stake

and give differing tax treatment?

1.Shares of listed Company [Exemption / Differential Rate of Tax]

2.Shares held for less than 3 years but more than 1 year and transfer of controlling

interest together with shares

Refer to Madras High Court [1999] 236 ITR 51 Dr. D. L. Ramchandra Rao in connection

with bifurcation of consideration for land and building for composite sale