Take FMV on Distribution date for Capital Gains Post-Liquidation: Madras HC

T.R. Balasubramanium Vs ACIT (Madras High Court) Madras HC Clarifies Cost of Acquisition on Company Liquidation, Upholding FMV at Distribution Date: The Madras High Court, in the case of T.R. Balasubramanium vs. ACIT, has provided a significant clarification on the computation of capital gains when an asset is distributed to a shareholder upon company liquidation and subsequently sold. The Court held that the Fair Market Value (FMV) of the asset on the date of distribution should be considered the cost of acquisition for the shareholder for computing capital gains on the subsequent sale, espe...