Indexation From Previous Owner Upheld in Family Settlement & Demerger: ITAT Delhi

ACIT Vs KCT Papers Limited (ITAT Delhi)

Family Settlement + Tax-Neutral Demerger: ITAT Allows Indexation From Previous Owner, Revenue Appeal Dismissed

In this appeal, Revenue disputed CIT(A)’s order which had accepted Assessee’s computation of long-term capital loss on buyback of shares of Ballarpur Industries Ltd. Tribunal noted that Assessee had received the shares pursuant to Court-approved amalgamation & demerger schemes undertaken to implement the Thapar Family Settlement.

Tribunal examin

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