Reduction in share capital of subsidiary company amounts to transfer of capital asset: SC

PCIT Tax-4 & Anr. Vs Jupiter Capital Pvt. Ltd. (Supreme Court of India) Supreme Court held that the reduction in share capital of the subsidiary company and subsequent proportionate reduction in the shareholding of the assessee would be squarely covered within the meaning of transfer under Section 2(47) of the Income Tax Act. Accordingly, petition of the revenue dismissed. Facts- The respondent-assessee is a company engaged in the business of investing in shares, leasing, financing and money The assessee had made an investment in Asianet News Network Pvt. Ltd., an Indian company engaged in...