Intra Family restructuring without consideration does not lead to CG

This ruling reinforces the long-standing principle that family arrangements and realignments, when genuine and supported by contemporaneous evidence, do not trigger capital gains taxation.

The Tribunal emphasized consistency in tax treatment, holding that where identical transactions in the hands of the recipient (donee) have been accepted as non-taxable by the Department, a contrary view cannot be adopted in the hands of the transferor (donor).

The judgment is particularly important for corporate groups and promoter families, as it recognises that commercial restructuring within a family framework cannot be automatically equated with tax avoidance.