Transfer of intangible assets with right to carry on business is taxable as LTCG

ACIT Vs Feroke Boards Ltd. (ITAT Cochin) The first issue to be decided is whether the assets transferred by the assessee to M/s.Masonite Holdings Private Limited is a “financial asset” coming within the Explanation 1(i)(e) to section 2(42A) of the I.T.Act. The term “financial asset” has been described in Explanation 1(i)(d) to section 2(42A) of the I.T.Act to be a capital asset, being share or any other security. As per Explanation (2) to section 2(42A) of the I.T.Act, the expression “security” shall have the meaning assigned to it in clause (4) of section 2 of the Securities Contr...