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Transfer of shares by initial subscribers to a MOA does not amount to a change in shareholding as per section 79 of the Income-tax Act, 1961 and therefore, benefit of brought forward loss is available
Case Law Details
- Case Name
- Income Tax Officer Vs. M/s. S- Net Freight (India) Pvt. Ltd. (ITAT Delhi)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2001- 02
- Courts
- All ITAT, ITAT Delhi
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ITO Vs. M/s. S-Net Freight (India) Pvt. Ltd. (ITAT Chennai) – The Tribunal order has recognised that beneficial ownership and legal ownership could be different and for the purpose of section 79 of the Act, the beneficial ownership was relevant. Accordingly, share transfers by nominees or trustees of the beneficial owner would not trigger the provisions of section 79 of the Act while the beneficial ownership did not change beyond 51 percent.
Ld. CIT(A) has observed that it could not be accepted that the nominees were used only as a legal necessity. Now, once, the requirements of the ...
