21 February 2013
A company "X" leases land to other company "Y" for a long time. In lieu of leasing, company "Y" issues shares to company "X" in the form of one time lease premium. Whether this one time lease premium is taxable in the hands of company "X". If taxable, whether it would be capital gain or income from other sources? Whether it is taxable with virtue of section 2(47)(vi) of the Income Tax Act 1961? Expert opinions sought.
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