Transfer of capital assets by way of sale

Transfer of capital assets by way of sale under section 2(47) (i) of income tax act.
Transfer includes sales of a capital assets. The sale may be voluntary or involuntary, for example sale at the instance of decree holder under court orders also results in transfer of property.

Redemption of preference shares
Redemption of preference shares held by the assessee amounts to purchase by the company and sale of assets by the assessee. Gains on redemption is taxable [Seth jwaladas Mathuradas mohan trust vs. CIT 1987 165 ITR 620.

Sale of foreign currency held as a capital assets
Foreign currency is like any other commodity when it is converted into rupees it is virtually a sale of the commodity for a price. Therefore tax is leviable on capital gain made on the conversion of sale of foreign currency held as a capital asset [Kirloskar vs. CIT 117 ITR 82.
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