Firestone Industrial Products Inc, United States vs. ACIT, Circle 1(3)(1), New Delhi
The appeal is allowed and the impugned addition is deleted
ITA 1066/DEL/2023[2018-19]Status: DisposedITAT Delhi05 Jun 2024AY 2018-19
Bench: the Ld. CIT(A), assessee had taken a plea that the company is a separate entity from its share holders/members and, with transfer of shares, assets of the company are not transferred, and the same continues to be held by the company. It was also explained that since the assessee did not have PAN at the time of sale of shares, buyer M/s Sundaram Industries Pvt. Ltd. deducted @20% plus surcharge and cess on such Long Term Capital Gain earned by the assessee, which is reflected in From 26AS an
For Appellant: Shri Ved Jain, Adv. & Ms. SupriyaFor Respondent: Shri Vizay B. Vasanta, CIT-DR
Section 112(1)Section 112(1)(c)Section 112(1)(ii)
…meetings, management rights, controlling rights, control premium, brand licences and so on as shares constitute a bundle of rights. (See CharanjitLal v. Union of India AIR 1951 SC 41, Venkatesh (minor) v CIT 243 ITR 367 (Mad) and Smt. Maharani Ushadevi v. CIT 131 ITR 445 (MP). Further, the High Court has failed to examine the nature of the following items, namely. non-compete agreement, control premium, call and put options, consultancy support, customer base, brand licences etc. On facts, we are of the view that the High Court, in the present case, ought to have examined the entire transaction holistically. VIH…
