Capital gain on transferring asset to newly formed company

If transfer is done by complying the provisions of sec 47 of Income Tax Act 1961 then capital exempted. 

Originally posted by : Saket Sinha
	If transfer is done by complying the provisions of sec 47 of Income Tax Act 1961 then capital exempted.

Is there any exemption available u/s 54 for investing the gain to the Newly formed Company..? 

Dear Saurabh

Capital gains arises when there is a transfer of capital asset. Capital gain shall be payable by  transferor.

Sec47 govern those situations where transfer are not regarded as transfer in the hands of transferor therfore capital gain does not arise in these cases. These are exempt from capital gains

Sec 54 provides for exemptions which means that if capital gain arises from tranfser then only you can clain exemption by complying the provision of sec54

you are saying no tax liablity is payable in the hands of tranferor as well as transferee..?