Corporate tax alert has been saved
Corporate tax alert
For exclusion from transfer, entire share capital should include preference and equity share capital
The Mumbai Bench of the Income-tax Appellate Tribunal (ITAT), based on facts of the case, has rendered its decision that the taxpayer held 100% equity share capital of its subsidiary, but did not hold preference share capital. Thus, the taxpayer did not hold the ‘whole of the share capital’ of the subsidiary company and accordingly, conditions prescribed under section 47(iv)(a) of the Income-tax Act, 1961 (providing for exclusion from transfer), did not get satisfied.
