Provisions of section 56(2)(vii)(c) cannot be invoked while computing income under the head ‘capital gain’

INCOME TAX: Where a proprietor transfer his business to a private company and receives money as well as shares of such company as consideration then such transaction shall be regarded as ‘transfer’ and for the purposes of computation of capital gain, the value of the assets taken over by the company should be considered as the full value of consideration. However, in the instant case, since cost of acquisition and full value of consideration received on sale were same figure,

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