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TMI Blog2024 (12) TMI 1262X X X X Extracts X X X X X X X X Extracts X X X X ..... he hands of the recipient HELD THAT:- As per Section 47(iv) of the Act if the transfer of a capital asset by a company made to its subsidiary company cannot be regarded as transfer and nothing contained on Section 45 of the Act shall apply if the parent company or its nominee holds entire share capital in the transferee subsidiary company; and the subsidiary company is an Indian Company. Considering the fact that InterGlobal Education Services Ltd. is a subsidiary of the Assessee and the Assessee including its nominees holds the entire share capital in InterGlobal Education Services Ltd. and the said InterGlobal Education Services Ltd. being an Indian Company meets all requirements of Section 47(iv) of the Act. Thus, the transfer of lease h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) vide order dated 30/09/2021 by computing the income of the Assessee at Rs. 146,03,74,830/- by disallowing an amount of Rs. 55,89,93,050/- u/s 14A of the Act and also made addition of Rs. 37,65,51,700/- u/s 47 (iv) of the Act. Aggrieved by the assessment order dated 30/09/2021, the Assessee preferred the appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 21/04/2023 partly allowed the Appeal of the Assessee. Aggrieved by the order of the Ld. CIT(A) in deleting the addition of Rs. 37,65,51,700/- made on account of denial of exemption on transfer of lease hold rights in respect of land and building u/s 47 (iv) of the Act, the Department of Revenue preferred the present Appeal on the Grounds mentioned above. 4. The Ld. Departmental ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... along with the ownership interest in the building/structure constructed thereon to InterGlobal Education Services Ltd. for an aggregate consideration of Rs. 46,07,78,600/- and the said amount has been determined on the basis of Valuation Report of a registered valuer. The said consideration was discharged by the InterGlobal Education Services Ltd. by way of fresh issue of its share to Assessee Company. 7. During the assessment proceedings, based on the valuation undertaken by the DVO, the A.O. opined that the Assessee has undervalued the assets and made addition under the head of Business Income and held that the said transfer of the lease hold right was not exempt u/s 47(iv) of the Act on the ground that the Assessee has not been able to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 45 shall apply to the following transfers: .. (iv) any transfer of a capital asset by a company to its subsidiary company, if___ (a) The parent company of its nominees hold the whole of the share capital of the subsidiary company, and (b) The subsidiary company is an Indian company. 9. Considering the fact that InterGlobal Education Services Ltd. is a subsidiary of the Assessee and the Assessee including its nominees holds the entire share capital in InterGlobal Education Services Ltd. and the said InterGlobal Education Services Ltd. being an Indian Company meets all requirements of Section 47(iv) of the Act. Thus, the transfer of lease hold right in respect of the subject property for Assessment Year 2017-18 is not liable to tax. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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