1(1) Where an asset not being an asset referred to in sub-section (2) of section 45 which becomes the property of an amalgamated company under a scheme of amalgamation, is sold after the 29th day of February, 1988, by the amalgamated company as stock-in-trade of the business carried on by it, the cost of acquisition of the said asset to the amalgamated company in computing the profits and gains from the sale of such asset shall be the cost of acquisition of the said asset to the amalgamating company, as increased by the cost, if any, of any improvement made thereto, and the expenditure, if any, incurred, wholly and exclusively in connection with such transfer by the amalgamating company.
(2) Where an asset not being an asset referred to in sub-section (2) of
section 45 which becomes the property of the assessee on the total or partial
partition of a Hindu undivided family or under a gift or will or an irrevocable
trust, is sold after the 29th day of February, 1988, by the assessee as
stock-in-trade of the business carried on by him, the cost of acquisition of the
said asset to the assessee in computing the profits and gains from the sale of
such asset shall be the cost of acquisition of the said asset to the transferor
or the donor, as the case may be, as increased by the cost, if any, of any
improvement made thereto, and the expenditure, if any, incurred, wholly and
exclusively in connection with such transfer (by way of effecting the partition,
acceptance of the gift, obtaining probate in respect of the will or the creation
of the trust), including the payment of gift-tax, if any, incurred by the
transferor or the donor, as the case may be.
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1. Ins. by Act 26 of 1988, s. 13 (w.e.f. 1-4-1988).
Section 40A Expenses or payments not deductible in certain circumstances
Section 41 Profits chargeable to tax
Section 43A Special provisions consequential to changes in rate of exchange of currency
Section 43AA Taxation of foreign exchange fluctuation
Section 43B Certain deductions to be only on actual payment
Section 43C Special provision for computation of cost of acquisition of certain assets
Section 43CB Computation of income from construction and service contracts