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TMI Blog2014 (2) TMI 833X X X X Extracts X X X X X X X X Extracts X X X X ..... the process in which the assessee/investor has no role to play – thus, the authorities are not justified in holding that the assessee is not eligible for exemption under the provisions of section 10 clause 23G of the Act - the exemption claimed by the assessee u/s 10(23G) of the Income Tax Act in respect of long term capital gain of on sale of shares of M/s RSPCL to M/s BSES/REL is allowed – Decided in favour of Assessee. - IT Appeal No. 2185 (Mum.) OF 2009 - - - Dated:- 30-10-2013 - P. M. JAGTAP AND DR. S.T.M PAVALAN, JJ. For the Appellant : Arvind Sonde For the Respondent : O.P. Singh ORDER :- PER : Dr. S.T.M. Pavalan This appeal filed by the assessee is directed against the order of the Ld.CIT(A) -26, Mumbai dated 0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpetent authority. 4. On appeal, the Ld.CIT(A) confirmed the action of the AO. According to the Ld.CIT(A), the assets and liabilities of RSPCL were transferred to transferee company from the "appointed date" which was 01.04.2003 and the company RSPCL was no more existence as separate legal entity from 01.04.2003 which was eligible undertaking for exemption u/s 10(23G). Hence the capital gain arose on transfer and the sale of such shares of RSPCL was not eligible for exemption under the provisions of section 10 clause 23G of the Act. Aggrieved by the impugned order the assessee is in appeal before us. 5. Before us, the learned counsel for the assessee has stated that the investment by way of purchase of shares have been acquired during t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... king, exemption u/s 10(23G) on sale of shares of RSPCL would not be available to the assessee, unless the entity into which it got amalgamated i.e. BSES/REL also receives the approval from Central Government under the provisions of the said section. The Ld. DR has further stated that the amalgamation order cannot make the new company eligible for the approval u/s 10(23G). 6. We have heard both the sides and perused the material on record. Clause (23G) of section 10 of the Income-tax Act provides that any income by way of dividends, other than dividends referred to in section 115-O, interest or long term capital gains of an infrastructure capital fund or an infrastructure capital company from investments made on or after 1st day of June, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... approval which is the only way to take away the approval already granted under rule 2E, it has to be presumed that the approvals given by the central government is in force. 6.2 Moreover, the benefit which has accrued to the investor/assessee cannot be taken away just because of the reason that the investee company which has originally been approved u/s 10(23G) by the government has amalgamated into another company. The assessee at the time of investment has been assured that it would be entitled to the benefit by way of the approval granted u/s 10(23G) by the government to the investee company. At the time of purchasing the shares in RSPCL, the assessee would have had the legitimate expectation of being treated in a particular way of rec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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