Shares held by nominees cannot be considered as held by assessee – S. 47(iv) relief not available if Assessee do not hold 100% of subsidiary

Capital gain on buy-back of shares is taxable under Section 46A of the Act in the hands foreign company

It was argued that Section 45 of the Act alone was the charging section and section 46A cannot be resorted to, to tax the capital gains arising out of such transaction. Sec 47 of the Income-tax Act contains a non-obstante clause as it were only in respect of Sec 45 of the Act. It says “nothing contained in Sec 45 shall apply to the following transfers” That means two things. One, it does not override Sec

Please become a Premium member. If you are already a Premium member, login here to access the full content.