the entire assets(Inc. out of Acc. profits) released during liquidation are subjected to CAPITAL GAINS TAX. Also assets released out of Acc. profits are taxed under Other Heads of Income. If I am right, Isn't it a case of double Taxation
Where a shareholder on the liquidation of a company receives any money or other assets from the company, he shall be chargeable to income-tax under the head "Capital gains", in respect of the money so received or the market value of the other assets on the date of distribution, as reduced by the amount assessed as dividend within the meaning of sub-clause (c) of clause (22) of section 2 and the sum so arrived at shall be deemed to be the full value of the consideration for the purposes of section 48.