COMMISSIONER OF INCOME TAX DEL vs. M/S ABHUINANDAN INVESTMENTS LT

ITA - 853 / 2005HC Delhi07 August 202037 pages
For Petitioner: VISHNU SHARMA
AI SummaryRemanded

What did the High Court hold?

The High Court held that the ITAT's decision was erroneous. It found that the transaction of receiving shares of an amalgamated company in lieu of shares of an amalgamating company constitutes a taxable event, irrespective of whether the shares were held as capital asset or stock-in-trade.

What were the facts?

The assessee received shares of an amalgamated company in lieu of shares of an amalgamating company. The Assessing Officer taxed this as business income, considering it a transfer. The ITAT allowed the assessee's appeal, holding no profit accrues upon receipt of shares of the amalgamated company.

What were the issues?

Whether the receipt of shares of an amalgamated company in lieu of shares of an amalgamating company is a transfer and taxable. Whether the ITAT erred by not adjudicating the nature of shareholding (capital asset vs. stock-in-trade).

Which sections of the Income-tax Act were involved?

Section 47(vii),Section 260A

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Cases cited in this judgment(8)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

ITA 822/2005 & connected matters * IN THE HIGH COURT OF DELHI AT NEW DELHI

Reserved on: 02.07.2020 Pronounced on: 07.08.2020

+ ITA 822/2005 THE COMMISSIONER OF INCOME TAX-V, NEW DELHI

..... Appellant Through: Mr.Sunil Agarwal, Senior Standing Counsel with Mr.Tushar Gupta, Junior Standing Counsel for Income Tax Department.

versus

M/S NALWA INVESTMENT LTD.

..... Respondent Through: Mr.Ajay Vohra, Senior Advocate with Ms.Kavita Jha, Advocate.

+ ITA 853/2005 COMMISSIONER OF INCOME TAX DELHI ..... Appellant Through: Mr.Deepak Anand, Senior Standing Counsel with Mr.Vipul Agarwal, Junior Standing Counsel.

versus

M/S ABHUINANDAN INVESTMENTS LTD. ..... Respondent Through: Mr.Ajay Vohra, Senior Advocate with Ms.Kavita Jha, Advocate.

+ ITA 935/2005 COMMISSIONER OF INCOME TAX DELHI ..... Appellant Through: Mr.Ajit Sharma, Senior Standing Counsel with Ms.Adeeba Mujabhid, Junior Standing Counsel.

2

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