C.I.T., COCHIN vs GRACE COLLIS

The Supreme Court addressed the appeals by the Revenue against the Kerala High Court's decision regarding the amalgamation of Ambassador Steamships Pvt. Ltd. with Collis Line Pvt. Ltd. The Court held that there was no transfer of shares as per the provisions of Section 256(1) of the Income Tax Act, 1961, affirming the High Court's negative answer to the first question. Consequently, the Court ruled that Section 49(2) of the Income Tax Act did not apply to the sale of shares, thus upholding the High Court's decision in favor of the assessees.