Case Law Details
Case Name : Periar Trading Company Private Limited Vs ITO (ITAT Mumbai)
Related Assessment Year :
Courts :
All ITAT ITAT Mumbai
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Periar Trading Company Private Limited Vs ITO (ITAT Mumbai)
Conclusion: Conversion of cumulative and compulsory convertible preference shares (CCPS) into equity shares cannot be treated as ‘transfer’ under section 2(47) and no capital gain is to be computed upon such conversion.
Held: AO made addition on account of conversion of cumulative and compulsory convertible preference shares (CCPS) into equity shares treating the same as transfer within the meaning of section 2(47) and accordingly, computing the long term capital gain as per section 45. It was noted that CBDT vide its Circular d...
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OFFHAND
” conversion” – in nthe instant case the point of issue pertains to the subject matter of the ‘transaction’ – being converesion of one type to another type of ‘shares’. Of contextual releance is the point of issue discussed in the Article earlier published on this website- in contrast, thatt was in relation to conversion of one legal entity to another – company to LLP !
The other issue reg. ‘notional interest’ ‘, charged to tax, look through the repeatedly canvassed propostion that income chargeable could only be ‘real income’, not notional; – but is still being carried forward in litigation , in any view, is so reprensible as it is time to cry a halt to the Revenue’s obstinately persistent stance
Over to…!
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