India - Income Tax Act 2010 - Saarc

S. 47A I.T. ACT, 1961 1.3127[Withdrawal of exemption in certain cases.47A. 8[(1)] Where at any time before the expiry of a period of eight years fromthe date of the transfer of a capital asset referred to in clause (iv) or, as thecase may be, clause (v) of section 47,—(i) such capital asset is converted by the transferee company into, or istreated by it as, stock-in-trade of its business; or(ii) the parent company or its nominees or, as the case may be, the holdingcompany ceases or cease to hold the whole of the share capital of thesubsidiary company,the amount of profits or gains arising from the transfer of such capital asset notcharged 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 anythingcontained 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.]9[(2) Where at any time, before the expiry of a period of three years from the dateof the transfer of a capital asset referred to in clause (xi) of section 47, any of theshares allotted to the transferor in exchange of a membership in a recognisedstock exchange are transferred, the amount of profits and gains not chargedunder section 45 by virtue of the provisions contained in clause (xi) of section 47shall, notwithstanding anything contained in the said clause, be deemed to be theincome chargeable under the head “Capital gains” of the previous year in whichsuch shares are transferred.]10[(3) Where any of the conditions laid down in the proviso to clause (xiii) or theproviso to clause (xiv) of section 47 are not complied with, the amount of profitsor gains arising from the transfer of such capital asset or intangible asset notcharged under section 45 by virtue of conditions laid down in the proviso toclause (xiii) or the proviso to clause (xiv) of section 47 shall be deemed to be theprofits and gains chargeable to tax of the successor company for the previousyear in which the requirements of the proviso to clause (xiii) or the proviso toclause (xiv), as the case may be, are not complied with.]The following sub-section (4) shall be inserted after sub-section (3) of section 47Aby the Finance Act, 2010, w.e.f. 1-4-2011 :(4) Where any of the conditions laid down in the proviso to clause (xiiib) of section47 are not complied with, the amount of profits or gains arising from the transferof such capital asset or intangible asset or share or shares not charged undersection 45 by virtue of conditions laid down in the said proviso shall be deemedto be the profits and gains chargeable to tax of the successor limited liabilitypartnership 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 notcomplied with.7. Inserted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-4-1985.8. Inserted by the Finance Act, 1997, w.e.f. 1-4-1998.9. Inserted, ibid.10. Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999.