Reduction in share capital results into transfer of capital asset u/s. 2(47): SC

PCIT & ANR. Vs Jupiter Capital Pvt. Ltd. (Supreme Court of India) Supreme Court held that the reduction in share capital of the subsidiary company results into the transfer of capital asset as envisaged in section 2(47) of the Income Tax Act. Accordingly, petition of revenue dismissed. Facts- The respondent-assessee is a company engaged in the business of investing in shares, leasing, financing and money lending. The assessee had made an investment in Asianet News Network Pvt. Ltd., an Indian company engaged in the business of telecasting news, by purchasing 14,95,44,130 shares having face...