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 examined the record where the corporate restructuring, share movements, diagrams & shareholder l...