Case Law Details
Sheetala Credit & Holdings Private Limited Vs ITO (Madras High Court)
High Court held that assessing authority has rightly concluded that there is no capital gains that arises from the transaction since the entire transaction was a buyout of shares by virtue of order of the Apex Court. The officer, in this regard refers to the statement of the Apex Court that the transaction ‘does not amount to shares being transferred inter vivos, nor can the payment for the shares be treated as deemed dividend’. Thus the clear inference that the officer has arrived at, is that there can be no instance of capital gain tax nor any levy under Section 2 (22) (e) of the Act dealing with deemed dividend.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
Mr.R.S.Balaji, learned Senior Standing Counsel accepts notice for the respondents and is armed with necessary instructions to enable final disposal of these matters, even at the stage of admission.
2. I have had occasion to consider an identical challenge in W.P.No.12918 of 2023 and by order dated 26.04.2023 have dismissed the Writ Petition in the following terms:
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