Preference shares Redemption not taxable as deemed dividend

Brief of the case: The ITAT Mumbai bench in the above cited case held that since redemption of preference shares does not result in reduction of share capital as per Sec 80 of the Companies Act,1956 , the redemption value cannot be taxed as deemed dividend as the distribution of profits if at all there may be is not resulting in reduction of capital. Further, the assessee did not acquire the shares free of cost but against a valuable consideration (i.e credit balance in taken over firm) , which would not result in any other  gain to assessee so as to be taxed as deemed dividend. Facts of t...