When there is no transfer there is no capital gain and consequently no tax on capital gain is liable to be paid.

 When there is no transfer there is no capital gain and consequently no tax on capital gain is liable to be paid. 

No capital gain liability aroused when the assessee has transferred the shares based on the family settlement as per the direction of CLB as held in the case of CIT v. R. Nagaraja Rao [2013] 352 ITR 565, the Hon'ble Karnataka High Court observed that Partition or family settlement is not transfer. When there is no transfer there is no capital gain and consequently no tax on capital gain is liable to be paid. (ITAT Mumbai, ITA No. 186/Mum/2021)



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