2014 (9) TMI 422 - SCH - Income Tax

Supreme court dismissed the SLP filed by Revenue against the order of High Court 2012 (5) TMI 257 - BOMBAY HIGH COURT where HC held that there was an error in making an addition u/s 41(1) as there was no remission or cessation of liability during AY 2002-03 - No records have been brought in by the revenue for redemption of shares being sham transaction - also, redemption of preference shares comes u/s 2(47) - non-cumulative redeemable preference shares were not in the nature of bonds or debentures for the purpose of benefit of indexation.

Summary

The Supreme Court dismissed the Special Leave Petition filed by the Petitioner, based on the final judgment and order dated 27/04/2012 in ITA No. 5372/2010 passed by the High Court of Bombay. Chief Justice Kurian Joseph and Justice Rohinton Fali Nariman were part of the bench.