India - Income Tax Act 2010 - Saarc

1.309 CH. IV - COMPUTATION OF INCOME FROM CAPITAL GAINS S. 47stock exchange in India which is recognised under the provisions ofthe Securities Contracts (Regulation) Act, 1956 (42 of 1956);(xii) any transfer of a capital asset, being land of a sick industrial company,made under a scheme prepared and sanctioned under section 18 96 ofthe Sick Industrial Companies (Special Provisions) Act, 1985 (1 of1986) where such sick industrial company is being managed by itsworkers’ co-operative :Provided that such transfer is made during the period commencingfrom the previous year in which the said company has become a sickindustrial company under sub-section (1) of section 17 97 of that Actand ending with the previous year during which the entire net worthof such company becomes equal to or exceeds the accumulatedlosses.Explanation.—For the purposes of this clause, “net worth” shall havethe meaning assigned to it in clause (ga) of sub-section (1) ofsection 3 97 of the Sick Industrial Companies (Special Provisions) Act,1985 (1 of 1986);]98[(xiii) 99 [any transfer of a capital asset or intangible asset by a firm to acompany as a result of succession of the firm by a company in thebusiness carried on by the firm, or any transfer of a capital asset to acompany in the course of 1 [demutualisation or] corporatisation of arecognised stock exchange in India as a result of which an associationof persons or body of individuals is succeeded by such company :]Provided that—(a) all the assets and liabilities of the firm 2 [or of the association ofpersons or body of individuals] relating to the business immediatelybefore the succession become the assets and liabilities ofthe company;(b) all the partners of the firm immediately before the successionbecome the shareholders of the company in the same proportionin which their capital accounts stood in the books of the firm onthe date of the succession;(c) the partners of the firm do not receive any consideration orbenefit, directly or indirectly, in any form or manner, other thanby way of allotment of shares in the company; and96. For text of section 18 of the Sick Industrial Companies (Special Provisions) Act, 1985, seeAppendix.97. For text of sections 3(1)(ga) and 17 of the Sick Industrial Companies (Special Provisions)Act, 1985, see Appendix.98. Clauses (xiii) to (xv) inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999.99. Substituted for the portion beginning with the words “where a firm is succeeded” andending with the words “intangible asset to the company” by the Finance Act, 2001, w.e.f.1-4-2002. Prior to its substitution, the quoted portion read as under :“where a firm is succeeded by a company in the business carried on by it as a result ofwhich the firm sells or otherwise transfers any capital asset or intangible asset to thecompany:”1. Inserted by the Finance Act, 2003, w.e.f. 1-4-2004.2. Inserted by the Finance Act, 2001, w.e.f. 1-4-2002.