Tax On share issue
Goongan (Student) (450 Points)
10 May 2007> there must be capital assets u/s 2(14)
> there must be transfer u/s 2(47)
Now question arise - why share/debenture issue by co.is not taxable as capital Gain in hand of Co. although, > share is the capital assets of the co. u/s 2(14)
> It is transfer u/s 2(47)
Here it is noted that above transaction is not cover under u/s 46(1) i.e distribution of capital assets in case of liquidation of the co.is not a transfer in hand of Co.
friends please give your answer with referance to Sec. I am waiting your suggestion.......