| COURT: | ITAT Kolkata |
| CORAM: | S. S. Viwanethra Ravi (JM), Sudhakar Reddy (AM) |
| SECTION(S): | 45, 47(iv), 48 |
| GENRE: | Domestic Tax |
| CATCH WORDS: | holding company - subsidiary, transfer |
| COUNSEL: | R. N. Bajoria |
| DATE: | February 28, 2018 (Date of pronouncement) |
| DATE: | March 13, 2018 (Date of publication) |
| AY: | 2010-11 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 47(iv) Transfer/ Capital Gains: The term 'subsidiary company’ is not defined under the Income-tax Act and so will have to be given the meaning in s. 4(1)(c) of the Companies Act. A subsidiary of a subsidiary (step-down subsidiary) is also a subsidiary of the parent. Consequently, transfers between the holding company and the step-down subsidiary are not "transfers" which can give rise to capital gains or loss | |
The transaction in question cannot be regarded as transfer in view of provisions of section 47(iv) of the Act, as it is a transfer of capital asset by a company to its subsidiary company and as a second step down 100% subsidiary company is also as subsidiary of the assessee company under the Companies’ Act 1956 as the term ‘subsidiary company’ has not been defined under the Income-tax Act, 1961
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