Forfeited share capital is Capital Receipt & not taxable under section 56(2)(ix)

Mangal Credit and Fincorp Ltd. Vs DCIT (ITAT Mumbai)

In the instant case, the assessee has received money on issuing share capital in the form of exercise of rights in share warrants. The share capital so collected by the assessee is not in the course of negotiations for transfer of capital asset. The shares so issued may constitute Capital asset in the hands of the persons, who purchased the shares, but that is not relevant here. Issuing share capital does not result in transfer any capital asset. Accordingly, since the mon

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