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2017 (2) TMI 280 - HC - Income TaxClaim of long-term capital loss - Held that:- The assessee had not taken permission of the relevant statutory authority regarding sale of said shares. The assessee's reply to the Assessing Officer remained silent on the issue of statutory permission. Section 536(2) of the Companies Act, 1956 is very clear regarding the avoidance of transfers after commencement of winding up. In the case of a winding up by or subject to the supervision of the court, any disposition of the property (including actionable claims) of the company, and any transfer of shares in the company or alteration in the status of its members, made after the commencement of the winding up, shall unless the court otherwise orders, be void. Section 536(2) of the Companies Act declares the transfer of shares during the liquidation proceedings as void. The transfer of shares includes transfer of rights in shares which is declared void under section 536(2) of the Companies Act and therefore, it is not a transfer at all and therefore, the question of capital gains/losses on the said transaction does not arise. Therefore, the transfer of 27410 shares of M/s Rustom Mills Industries Ltd by the assessee company by way of deed of assignment is held as void and not falling under section 2(47) of the Income-tax Act with no consequences as to the claim of long-term capital loss is not allowed to the assessee. - Decided in favour of the Revenue
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