Conversion of Share Warrants Not a Taxable Transfer Due to Absence of Consideration: ITAT Mumbai

DCIT Vs Kemper Holding Pvt. Ltd. (ITAT Mumbai)

The appeal before the Income Tax Appellate Tribunal (ITAT), Mumbai, arose from the order of the Commissioner of Income Tax (Appeals) [CIT(A)] dated 13.06.2011 for Assessment Year 2008–09, wherein an addition of Rs. 9,45,00,000 made by the Assessing Officer (AO) was deleted. The Revenue challenged the deletion, contending that conversion of share warrants into equity shares constituted a transfer under Section 2(47) of the Income-tax Act, 1961, and that the difference between the market value of shares on the date of allotment and the

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