Section 2(22)(c) — the law in short
What the courts have decided on section 2(22)(c), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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T R Balasubramanium v ACIT
High CourtHelps taxpayerValidity unconfirmed
I received a flat when my company was wound up, paid capital gains tax then, and sold it in the same year. What is my cost?
The fair market value of the asset on the date of distribution. A liquidation produces two transfers, not one — the extinguishment of the shareholder's rights in exchange for the asset, and then the shareholder's own sale of that asset — and where the shareholder has been assessed to capital gains on the first, s.55(2)(b)(iii) gives him the distribution-date value as his cost for the second.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.