India - Income Tax Act 2010 - Saarc

1.301 CH. IV - COMPUTATION OF INCOME FROM CAPITAL GAINS S. 45(i) all the assets and liabilities of the undertaking or undertakingsimmediately before the transfer become the assets and liabilitiesof the resulting co-operative bank;(ii) the assets and the liabilities are transferred to the resulting cooperativebank at values (other than change in the value of assetsconsequent to their revaluation) appearing in its books of accountimmediately before the transfer;(iii) the resulting co-operative bank issues, in consideration of thetransfer, its membership to the members of the demerged cooperativebank on a proportionate basis;(iv) the shareholders holding seventy-five per cent or more in valueof the shares in the demerged co-operative bank (other thanshares already held by the resulting bank or its nominee or itssubsidiary immediately before the transfer), become shareholdersof the resulting co-operative bank, otherwise than as a resultof the acquisition of the assets of the demerged co-operative bankor any undertaking thereof by the resulting co-operative bank;(v) the transfer of the undertaking is on a going concern basis; and(vi) the transfer is in accordance with the conditions specified by theCentral Government, by notification in the Official Gazette, havingregard to the necessity to ensure that the transfer is forgenuine business purposes;(g) “demerged co-operative bank” means the co-operative bank whoseundertaking is transferred, pursuant to a demerger, to a resultingbank;(h) “predecessor co-operative bank” means the amalgamating co-operativebank or the demerged co-operative bank, as the case may be;(i) “successor co-operative bank” means the amalgamated co-operativebank or the resulting bank, as the case may be;(j) “resulting co-operative bank” means—(i) one or more co-operative banks to which the undertaking of thedemerged co-operative bank is transferred in a demerger; or(ii) any co-operative bank formed as a result of demerger.]Capital gains.E.—Capital gains4045. 41 [(1)] Any profits or gains arising from the transfer of a capital asset 42effected 42 in the previous year shall, save as otherwise provided in sections40. See also Circular No. 23D(XXIII-6) of 1965 and Circular No. 768, dated 24-6-1998. Fordetails, see Taxmann’s Master Guide to Income-tax Act.For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.41. Inserted by the Finance Act, 1964, w.e.f. 1-4-1964. “(1)” deemed to have been omitted withthe omission of sub-sections (2) to (4) by the Finance Act, 1966, w.e.f. 1-4-1966 and deemedto have been inserted with the insertion of sub-section (2) by the Taxation Laws(Amendment) Act, 1984, w.e.f. 1-4-1985.42. For the meaning of the terms/expressions “transfer”, “transfer of a capital asset”, and“effected”, see Taxmann’s Direct Taxes Manual, Vol. 3.