INCOME TAX QUERRY

409 views 2 replies

I HAVE A FOLLOWING QUERRY IN INCOME TAX

If a holding company holding 60% shares in subsidiary company transfers shares held as "stock in trade" at book value i.e Rs. 800,000. The Fair market value of the shares as on date of transfer is Rs.12,00,000. Is it correct on behalf of assessing officer to tax the difference between fair market value and book value.

Will there be any difference if the above asset is not stock in trade but held as "investment". 

 

Please let me know as soon as possible

 

Thanks & Regards.

Replies (2)

Dear Ashish,

We have Sec 45(2) where Conversion of Capital Asset into SIT is charged to tax as Capital Gain computed as per FMV on the date of transfer...

But there is no provision that sets the treatment in case it is other way round i:e Conversion of SIT into Capital Asset.(as Investment)

Therefore, AO is not justified in his action.

hey thx Aamir for the prompt reply....i have posted one more querry in relation to service tax...see if you can help me in repect of that...

Thanks & regards

Ashish

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 27 June 2026
CA Articled Trainee And Paid Assistant

SKAA & Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
Featured 24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details
Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
22 June 2026
Finance Manager- Chartered Accountant

Triveni Turbine Limited

Bengaluru

CA

View Details
Company
ARTICLESHIP 28 June 2026
Article Assistant

Sharma Chetan And Company

Gurgaon

CA Inter

View Details
Company
24 June 2026
Chartered Accountant - GST & Direct Tax

APL

Mumbai

CA

View Details
Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details