The SC held that the reduction in share capital of the ...

Proportionate reduction in shareholding on subsidiary's share capital reduction amounts to transfer 2(47).

January 11, 2025

Case Laws Income Tax SC

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 within the ambit of "sale, exchange or relinquishment of the asset" u/s 2(47) of the Income Tax Act, 1961. Relying on Anarkali Sarabhai case, it was observed that reduction of share capital or redemption of shares involves purchase of its own shares by the company and hence included within the meaning of transfer u/s 2(47). The matter was decided in favor of the assessee.

View Source

← Previous Next →

The SC held that the reduction in share capital of the ...

Proportionate reduction in shareholding on subsidiary's share capital reduction amounts to transfer 2(47).

January 11, 2025

Case Laws Income Tax SC

You may also like:

Reduction of share capital - Even though the public shareholders/non promotor shareholders had objected to the reduction of share capital in the EGH but the majority...

Determination and carry forward of long term capital loss in respect of shares held in Mahindra Shubhlabh Services Ltd., arising upon reduction in share capital by that...

Capital gain - transfer of a capital asset by assessee to its subsidiary company - There are different shareholders of preference share capital other than the holding...

Reduction of issued, subscribed, and paid-up equity share capital u/s 66 of the Companies Act, 2013. Compliance with Sections 66(1), 66(2), and 66(3) satisfied....

Oppression and mismanagement - reduction in shareholding - illegal transfer and allotment of shares - The NCLAT observed that, the appellants did not fully comply with...

Disallowance of capital loss on account of capital reduction scheme - Extinguishment of rights in shares - definition of ‘transfer’ u/s 2(47) - Loss arising to the...

Disallowing the claim of capital loss incurred by the appellant due to reduction of capital by the investee company - transfer u/s 2(47) - face value of shares remains...

Addition u/s 68 - unexplained amounts received towards Share Capital money - entry operators - HC

Addition u/s. 56(2)(viib) - premium on issue of shares of the company - since the company was incorporated on 07.11.2012 and cut off date of valuation of share was 16.11....

Reduction of share capital - the Company has complied with all the statutory requirements as per the directions of the Tribunal and has also filed necessary Affidavits...

Supply of Services - activity of holding of shares of subsidiary company by holding company - During the proceedings, the Central and State Governments issued...

Transfer of ESOP/ESPP/RSU by foreign holding company to employees of domestic subsidiary company does not attract GST where no additional fee, markup or commission is...

True & Fair view” is not depicted in the Balance Sheet - Generally the decrease in paid up capital can occur in various ways viz buyback of shares, forfeiture of shares,...

Addition u/s 56(2) - Allotment of shares - price less than the FMV - Merely by converting the share application money by allotting shares at a subsequent date cannot...

Depreciation on goodwill claimed on acquisition of its subsidiary - the assessee company was holding 95% of total equity share capital of its subsidiary RMIPL prior to...

Quick Updates: