Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (1) TMI 1197 - AT - Income TaxShort term capital gain on transfer of shares - taxable event arose in the year under appeal or not? - Transfer of capital assets during the financial year in terms of the provisions of section 2(47) - transfer of shares is complete between transferor and the transferee in terms of amended provisions of section 2(47) - CIT(A) held that the transfer is not complete in the year under appeal and gain arising out transfer of shares can be subjected to tax - whether the capital gain arising out of transfer of shares in question cannot be taxed in the year under appeal? - HELD THAT:- Agreement between the parties did not attain finality during the year under consideration hence, the impugned transaction in part ought not to have been taxed in the year under consideration. In our considered view, the Agreement is to be a read as a whole, the transfer of shares under dispute cannot be read into isolation. Moreover, one of the challenge before the Hon'ble High Court [2018 (4) TMI 549 - DELHI HIGH COURT] was regarding legality of MOU dated 03.03.2008. It was categorically prayed that MOU was void being contrary to the provisions of section 297 of the Companies Act, 1956. Therefore, under the peculiarity of the facts where the legality and validity of Agreement was under challenge, we do not see any infirmity into the order of Ld. CIT(A) to the extent it is held that the transfer of shares cannot be subjected to capital gain tax in the year under consideration on the ground that the entire transaction has not fructified - Decided against revenue.
|