Substitution of Shares on Amalgamation Not Automatically Business Income: SC

Nalwa Investment Ltd. Vs CIT (Supreme Court of India) Substitution of Shares on Amalgamation Not Automatically Business Income: Realisable Profit Test Laid Down These civil appeals before the Supreme Court arose from a common judgment dated 07.08.2020 of the Delhi High Court in ITA Nos. 935, 822, 853 and 961 of 2005 relating to AY 1997-98. The High Court had remanded the matters to the ITAT for fresh adjudication on whether shares held in the amalgamating company were stock-in-trade or capital assets, observing that if they were stock-in-trade, the transaction would fall outside Section 47(vii...