Allowing the appeal of the revenue the Court held that, entire shareholding transferred to subsidiary company and transfer of shares from subsidiary company to private equity fund incorporated in Cayman Islands. All transactions done to evade tax. Transaction is not genuine hence gains arising due to transactions assessable as capital gains. Court also held that the High Court has the power to find out if transactions are genuine.
PCIT v. Redington (India) Ltd. (2021) 430 ITR 298 (Mad.)(HC)
S. 45 : Capital gains-Transfer of shares to subsidiary in Mauritius- Transfer of Shares from subsidiary to Private Equity Fund incorporated in Cayman Islands-Transactions are not genuine-High Court has the power to find out if transactions are genuine.