Quiz for the week (13 Apr 2026) :
X Co Ltd is a domestic company engaged in manufacture of auto components. It sold its land for Rs.200 lakhs to its wholly owned subsidiary company by name Wax Ltd which is engaged in manufacture of air-conditioners. The stamp duty value of the land was Rs.300 lakhs at the time of sale. The actual cost of acquisition of land to X Co Ltd was Rs.50 lakhs. After 2 years, Wax Ltd commenced business of real estate by constructing luxury apartments. It converted the said land acquired from X Co Ltd as its stock in trade. What would be the tax consequence of the said transactions in the hands of X Co Ltd and Wax Ltd?
Share your thoughts on the above on or before 20th April 2026.