Case Law Details
DCIT Vs Teleperformance Global Services Pvt. Ltd. (ITAT Mumbai)
ITAT Mumbai held that approved sanctioned scheme of amalgamation is binding on the authorities and the same cannot be permitted to be challenged in a collateral proceeding.
Facts-
The assessee is engaged in the business of IT & IT enabled services. The Ld.AO observed that assessee on 30/7/2010 sold 6,44,285 equity shares in M/s Sparsh BPO Services Pvt Ltd for Rs.12,88,57,000/-. These shares were purchased by the assessee on 7/7/2008 for Rs.12,88,57,000/-. The Ld.AO observed that as on the date of sale of these shares, the assessee (SKR BPO) was very much in existence and the assessee, namely, SKR BPO, got amalgamated with the erstwhile company, M/s Serco BPO with effect from 7/7/2011. The Ld.AO observed that the shares in M/s Sparsh BPO Services Pvt Ltd was valued at Rs.200/- in the balance-sheet of SKR BPO which continued to be valued at Rs.200/- per share in the balance-sheet of M/s Serco BPO, after the sale of shares by SKR BPO. He observed that at the same time, Serco BPO became eligible to carry forward the long term capital loss incurred by SKR BPO consequent to the amalgamation.
Accordingly, the Ld.AO held that SKR BPO sold the shares at purchase cost only with a view to claim fictitious losses and concluded that the sale transaction was not a genuine transaction and was a colourable device. With these observations, the Ld.AO proceeded to disallow the claim of long term capital loss of Rs.2,85,61,088/-.
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