where assets of a co. are distributed to its shareholders on its liquidation,why such distribution is not regarded as transfer(in context of capital gain)?
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Liquidation of company
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because for transfer there must be give and take relationship. here co. gives assets to shareholders and dont recieve anything from shareholders. so it cant be treated as a transfer.
Assets transfer on liquidation to their share holders is excluded in capital gain tax. under section 46(1)/47.
But it is treated as dividend under sec 2 (22).
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