Forbes Campbell Finance Limited, Chennai vs. DCIT, Chennai
The appeal stand dismissed in terms of our above order
ITA 1275/CHNY/2017[2010-11]Status: DisposedITAT Chennai24 May 2022AY 2010-11
Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Anikesh Banerjee, Jm
For Appellant: Shri S.P. Chidambaram (Advocate) – Ld. ARFor Respondent: Shri Guru Bashyam (CIT) – Ld. DR
Section 100Section 115JSection 143(3)
…and the loss was notional loss. Upon reduction of capital, nothing moves from the coffers of the company. Accordingly, the loss was held to be notional loss. Reliance was also placed on the decision of Mumbai Tribunal in Shivalik Venture Private Ltd V/s DCIT (173 TTJ 238) wherein it was held that the profit arising on transfer of capital asset by assessee to its wholly owned subsidiary company is liable to be excluded from the net profit. Since FTL was wholly owned subsidiary company of the assessee, assessee’s shareholding immediately before the reduction of capital and thereafter remains the same. Therefore, th…
