section 2(24(iv) of the IT Act 1961

ncvijaykumar (Querist) 15 July 2010 This query is : Resolved
A director received a property from a company under a family settlement as per the award of the arbitrator under the Arbitration and conciliation Act 1996. Whether such property be treated as a "Benefit or Perquisite" under section 2(24)(iv) of the Income Tax Act 1961? is there any case law in support of the assessee that it is not taxable under the above section?

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A V Vishal (Expert) 16 July 2010
In the first place no property of a registered company can be distributed under family settlement to the director, it is ultra vires under the company act.

Vineet (Expert) 17 July 2010
Need more facts before any advice.

How the transaction has been planned. Whether the entire company is coming under control of director or the company is transferring property in the name of director against some consideration in money or equivalent terms (eg exchange of shares or other investments)