47A. Withdrawal of
exemption in certain cases.- (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.
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