Section 47A of Income Tax Act "Withdrawal of exemption in certain cases"
47A. (1) Where at any time before the expiry of a period
of eight years from the date of the transfer of a capital
asset referred to in clause (iv) or, as the case may be,
clause (v) of section 47,-
(i) such capital asset is converted by the transferee
company into, or is treated by it as, stock-in-trade of its
business; or
(ii) the parent company or its nominees or, as the case may
be, the holding company ceases or cease to hold the whole of
the share capital of the subsidiary company,
the amount of profits or gains arising from the transfer of
such capital asset not charged under section 45 by virtue of
the provisions contained in clause (iv) or, as the case may
be, clause (v) of section 47 shall, notwithstanding anything
contained in the said clauses, be deemed to be income
chargeable under the head "Capital gains" of the previous
year in which such transfer took place.
(2) Where at any time, before the expiry of a period of
three years from the date of the transfer of a capital asset
referred to in clause (xi) of section 47, any of the shares
allotted to the transferor in exchange of a membership in a
recognised stock exchange are transferred, the amount of
profits and gains not charged under section 45 by virtue of
the provisions contained in clause (xi) of section 47 shall,
notwithstanding anything contained in the said clause, be
deemed to be the income chargeable under the head "Capital
gains" of the previous year in which such shares are
transferred.
(3) Where any of the conditions laid down in the proviso to
clause (xiii) or the proviso to clause (xiv) of section 47
are not complied with, the amount of profits or gains
arising from the transfer of such capital asset or
intangible asset not charged under section 45 by virtue of
conditions laid down in the proviso to clause (xiii) or the
proviso to clause (xiv) of section 47 shall be deemed to be
the profits and gains chargeable to tax of the successor
company for the previous year in which the requirements of
the proviso to clause (xiii) or the proviso to clause (xiv),
as the case may be, are not complied with.
(4) Where any of the conditions laid down in the proviso to
clause (xiiib) of section 47 are not complied with, the
amount of profits or gains arising from the transfer of such
capital asset or intangible assets or share or shares not
charged under section 45 by virtue of conditions laid down
in the said proviso shall be deemed to be the profits and
gains chargeable to tax of the successor limited liability
partnership or the shareholder of the predecessor company,
as the case may be, for the previous year in which the
requirements of the said proviso are not complied with.
What is Capital gains? Section 45 of Income Tax Act 1961
What are the Transactions not regarded as transfer? Section 47 of Income Tax Act 1961
What is Withdrawal of exemption in certain cases? Section 47A of Income Tax Act 1961
What is Mode of computation? Section 48 of Income Tax Act 1961
What is Cost with reference to certain modes of acquisition? Section 49 of Income Tax Act 1961