Tribunal held that where parent company was not holding whole of share capital of subsidiary company along with nominees, transaction of buy back of shares was not covered under S. 47(iv) of the Act. Accordingly gains arising on buy back of shares is taxable under section 46A and not under S. 45 which is charging section to bring capital gains to tax under Act.( AY. 2014-15)
Acciona Wind Energy (P.) Ltd. v. DCIT (IT) (2020) 180 ITR 792 /185 DTR 280 / 203 TTJ 377 (Bang.)(Trib.)
S. 47(iv) : Capital gains-Transaction not regarded as transfer – Subsidiary –Parent company is not holding whole share capital of subsidiary – Capital gains on buy back is taxable. [S. 45 46A]