Shareholding Dilution from Fresh Issue Does Not Trigger Capital Gains: ITAT Delhi

ITO Vs Sunita Sanjeev Aeren (ITAT Delhi) Mere Reduction in Shareholding Due to Fresh Issue of Shares Cannot Trigger Capital Gains: ITAT Delhi Delhi ITAT  has once again clarified the long-debated question of whether a reduction in percentage shareholding- caused solely by a fresh issue of shares to a third party-can be treated as a “transfer” giving rise to capital gains in the hands of an existing shareholder. In a significant ruling the Tribunal dismissed the Revenue’s appeal & held that no taxable capital gain arises when a shareholder has neither transferred shares nor relinquis...