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

Supreme Court: Share Capital Reduction in Subsidiary is a Transfer u/s 2(47) of Income Tax Act.

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 ...

Supreme Court: Share Capital Reduction in Subsidiary is a Transfer u/s 2(47) of Income Tax Act.

January 11, 2025

Case Laws Income Tax SC

You may also like:

Capital gain - compromise settlement for breach of contract - Transfer u/s 2(47) - the compensation received by the assessee arises out of the transfer of capital asset...

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...

Capital gain - transfer u/s 2(47) - unregistered JD agreement - appellant had not received any consideration - since an unregistered agreement involving the transfer of...

The case pertains to the applicability of Section 56(2)(x) of the Income Tax Act on the conversion of tenancy rights into ownership rights by a protected tenant. The key...

Capital gain on JDA - Transfer u/s 2(47) - There was no transfer of property under this JDA. Also without accrual of construction to the assessee, assessee was not...

Transfer of capital asset by a company to its subsidiary company - Long term capital gain v/s long term capital loss - transaction cannot be regarded as transfer u/s...

The ITAT Cochin dealt with a case involving Long Term Capital Gains (LTCG) arising from a Joint Development Agreement (JDA). The tribunal held that the transfer of...

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...

Income Tax: Section 47(iii) of the Income Tax Act, which exempts transfers of capital assets under gift, will or irrevocable trust from capital gains tax, is proposed to...

Transactions not regarded as transfer - exemption from tax on capital gains - the prerequisites provided in Section 47(iv) of the Act stand fulfilled i.e., the transfer...

Capital Gain - Transfer of capital asset u/s 2(47) - year of assessment - since the property was actually transferred in A.Y. 2013-14 the computation of short-term...

Capital gain - on entering into a JDA, there is a ‘transfer’ as per the provisions of section 2(47) of the Act and consequently capital gains is attracted.

Long term capital loss - Right as a capital asset created by MOU duly registered and the allotment letter, within the meaning of section 2(14) therefore when this right...

Capital gain – transfer of property where title is not absolute and clear - section 2(47)(v) - the assessee is liable to pay the capital gain tax during the year under...

Quick Updates: