M/S JINDAL EQUIPMENT LEASING CONSULTANCY SERVICES LTD. versus COMMISSIONER OF INCOME TAX DELHI – II, NEW DELHI

Issue for consideration

Issue arose as regards taxability of gains said to arise on amalgamation, where shares of the amalgamating company held by the assessees as stock-in-trade, stand substituted by shares of the amalgamated company; whether of itself, constitutes a realisation giving rise to taxable business income u/s.28, Income Tax Act, 1961 and if so, the conditions under which such accrual or receipt can be said to arise in the commercial sense, or whether the incidence of taxation arises only upon the subsequent sale of the