URGENT - APPLICABILITY OF CAPITAL GAIN TAX

 answer to point a) y to s limited should not be t/f. because nomination of a person is not equivalent t/f of property/deemed t/f of property by way of t/f of possession of property. nomination is not defined under income tax act. so we will go by the normal meaning of nomination- which does not equal to t/f of possession.

Dear Kabirsen,

Thanks for your interest in the topic.........please note that extinguishment of right to use the property amounts to transfer as per the said act. As such the property is removed from the Balance Sheet of Y limited.

Thanks & Regards

 if the co. y has removed the property from books of a/c...then it is clear the co. is acknowledging the t/f of property and 50c will apply accordingly.

bt my question is why the co. is removing the property frm its books on mere nomination of the property?? nomination only gives right to the nominee to claim the  property when y ceases to exist. the property should hv remained in co. books and only a seperate disclosure shud hv been made.

nw...coming to ur point on t/f of right. since the cost of aquisition of right of nominee is not definite for co. y the co. will not incurr capital gain tax(the same reason..why g/w of profession is not subject to capital gain tax).