| COURT: | Supreme Court |
| CORAM: | Mohan M. Shantagoudar J, R. K. Agrawal J |
| SECTION(S): | 45, 48 |
| GENRE: | Domestic Tax |
| CATCH WORDS: | capital gains, gift, transfer |
| COUNSEL: | Indu Malhotra, Shashi N. Kapila |
| DATE: | March 28, 2017 (Date of pronouncement) |
| DATE: | April 8, 2017 (Date of publication) |
| AY: | - |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| Capital gains: An amount received from a wholly-owned subsidiary in consideration of transfer of shares of the WOS to a group of shareholders is not taxable as capital gains. The Department cannot subject a transaction under the Gift-tax Act and also levy tax under the Income-tax Act. | |
It is not in dispute that M/s Annamalaiar Textiles (P) Ltd. did not pay any amount to the shareholders who ultimately got the shares transferred in their names. The respondent was holding 100 per cent shares of M/s Annamalaiar Textiles (P) Ltd., before it was transferred to Group B. No payment was made to the shareholders belonging to Group B and, therefore, the question of there being any capital gains at the hands of the respondent herein does not arise
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