On a writ petition against a notice under section\u00a0148\u00a0of the\u00a0Income-tax Act 1961\u00a0proposing to reopen the assessment in the case of the assessee for the assessment year 2015-16, on the ground that the provisions of section\u00a047(iv)\u00a0were not applicable to the transaction of redemption of preference shares, and the order rejecting the assessee\u2019s objections to the notice, the High Court held that on the redemption of preference shares, the shares are cancelled and the capital asset is extinguished and ceases to exist and, therefore, the provisions of section\u00a047(iv)\u00a0are not applicable to the transaction of redemption of preference shares, that no tangible material had come into existence after conclusion of the regular assessment proceedings and before recording of the reasons on the issues stated in the reasons recorded for reopening the case, that the reassessment was on the basis of material already on record and considered at the time of passing the original assessment order under section\u00a0143(3)\u00a0of the Act, that the reasons as furnished to the assessee and the undated and unsigned reasons which were never furnished to the assessee as reproduced in the order rejecting the assessee\u2019s objections, were different, that capital loss could never arise on the acquisition of shares but only on the transfer or sale of shares, that the assessee had not sold the preference shares but the shares were redeemed by G Ltd. and since on redemption there was a transfer of shares due to \u201cextinguishment of rights therein\u201d the capital loss was claimed in the return of income, that the notice had been issued without appreciating or understanding the correct facts, and that therefore, the notice and the order rejecting the assessee\u2019s objections were invalid (AY. 2015-16)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 147 : Reassessment-With in four years-Capital gains-Transfer-Redemption of preference shares-Loss-No new material-Reassessment-Reassessment notice and order disposing the objection is quashed. [S. 2(47) 47(iv) 148, Art. 226] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-46858","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-cbM","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/46858","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=46858"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/46858\/revisions"}],"predecessor-version":[{"id":46859,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/46858\/revisions\/46859"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=46858"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=46858"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=46858"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}