The case involved a dispute over the tax rate applicable on Long ...

Tax rate dispute resolved in favor of assessee on LTCG from unlisted shares sale. Share transfer is not a business asset transfer. TDS deduction explained.

June 11, 2024

Case Laws Income Tax AT

The case involved a dispute over the tax rate applicable on Long Term Capital Gains (LTCG) from the sale of unlisted shares u/s 112(1)(c) of the Act. The Appellate Tribunal held that the Share Purchase Agreement did not involve the transfer of assets but was a dilution of shareholding in a joint venture. The tax authority failed to properly examine the agreement, leading to an incorrect conclusion of a sale of capital assets. The Tribunal ruled in favor of the assessee, stating that there was no Long Term Capital Gain on the transfer of shares, and the income should not be taxed at the higher rate of 20% plus surcharge and cess. The Tribunal also accepted the explanation for the TDS deduction and rejected the tax authority's position.

View Source

← Previous Next →

The case involved a dispute over the tax rate applicable on Long ...

Tax rate dispute resolved in favor of assessee on LTCG from unlisted shares sale. Share transfer is not a business asset transfer. TDS deduction explained.

June 11, 2024

Case Laws Income Tax AT

You may also like:

Computation of LTCG - Based on a reading of Section 50CA of the Act, it is clear that where the actual sale consideration on transfer of unlisted equity shares is less...

Assessee followed joint venture model for sharing revenue with collaborators as per franchise agreement. Assessee recorded all revenues, incurred expenditure, and shared...

Profit from sale of shares - LTCG or STCG - Benefit of Indexation - the STT is to be paid only if the shares were sold in the stock exchange and since the assessee has...

Addition u/s 68 - Bogus LTCG on the sale of equity shares - The sale proceeds of such shares was credited to the bank account of the assessee. A copy of bank account...

Bogus LTCG - bogus share transaction - As in so far as cancellation of registration of sub-broker by the NSE through whom the assessee had sold shares of Buniyad...

The SC held that the reduction in share capital of the subsidiary company and subsequent proportionate reduction in the shareholding of the assessee would be covered...

Addition u/s 68 - bogus LTCG on sale of shares - The purchase of shares and the sale of shares were also reflected in Demat account statements. The sale of shares...

Assessee company successfully proved genuineness of share capital and share premium received from various private limited companies. Creditworthiness and identity of...

Assessee failed to declare Long Term Capital Loss (LTCL) on sale of shares of ECL and Long Term Capital Gain (LTCG) on sale of shares of Saya in the return of income....

Determination of LTCG on sale of shares - period of acquisition - acquisition of shares on the basis of share certificates issued on amalgamation in lieu of the shares...

Assessee, registered in Mauritius with tax residency certificate, claimed long-term capital gains from sale of shares as exempt under Article 13(4) of India-Mauritius...

LTCG OR STCG - Capital gain on sale of equity shares - period of holding of shares - There exists a clause for condition precedent to the sale which has to be fulfilled...

The ITAT Surat (Appellate Tribunal) considered an appeal regarding the addition u/s 68 for alleged bogus LTCG and unexplained cash credit. The appellant's claim for...

The ITAT considered the issue of addition u/s 2(22)(b) r.w.s. 56(2)(viia) concerning the treatment of bonus shares received by the assessee. The AO treated the bonus...

Sale of shares - share broker - Revenue condemned the share transaction of the assessee and held them to sham merely because some share brokers were found to be indulged...

Quick Updates: