Lending of shares cannot be construed as transfer within the definition of "transfer" giving rise to capital gains tax

Section 2(47) of Income-tax Act (“the Act”) defines transfer, which, inter alia includes sale, exchange, relinquishment of the asset or extinguishment of any rights therein. In the case of Phulchand Sons Investments Pvt. Ltd. Vs. ACIT (ITA No. 293/Mum/2009) the Mumbai Bench of Income Tax Appellate Tribunal (“the Tribunal”) observed that the assessee had undertaken a loan transaction and not sale of shares during the subject assessment year. The revenue authorities were unable to bring any evidence on record to establish t

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