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Commissioner Of Income-Tax (Central), ... vs Anglo India Jute Mills Co. Ltd. on 9 June, 1980

13. The assessee also relied on a number of cases for the proposition that where the asset was self-created or self-generated, it did not have any cost of acquisition and in a case of that nature tax on capital gains could not be levied. For this proposition reliance was placed on the cases of CIT v. Anglo India Jute Mills Co. Ltd. [1981] 129 ITR 352 (Cal) and CIT v. v. General Investment Co. Ltd. ; but these are cases where the assessee by his own effort created a right and/or an asset and later sold away that right or asset for valuable consideration. But in the case before us the assessee has acquired debentures for valuable consideration. After holding the debentures for sometime the assessee has converted the debentures into shares. The shares have thereafter been sold in the market. It is not a case of creation of an asset by the assessee by his own effort as in the case of goodwill. It is a case of a straight forward transaction in capital assets resulting in profits. Therefore, it will not be right to say that in a case like this Section 45 is not attracted at all.
Calcutta High Court Cites 36 - Cited by 37 - Full Document
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