https://www.taxtmi.com/caselaws?id=5618 SC held that reduction of share capital by lowering face value proportionately extinguishes parts of a shareholder's rights (dividend entitlement, liquidation share, and voting power), even though shareholder status continues. Such extinguishment or relinquishment of rights constitutes a "transfer" under section 2(47) and any profit arising therefrom is taxable under section 45 as capital gains. The court rejected the contention that only a sale gives rise to capital gain, finding the diminished rights on reduced face value amount to transferable extinguishment. en-us Thu, 04 Sep 1997 00:00:00 +0530 Sat, 11 Oct 2025 13:33:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5618 SC held that reduction of share capital by lowering face value proportionately extinguishes parts of a shareholder's rights (dividend entitlement, liquidation share, and voting power), even though shareholder status continues. Such extinguishment or relinquishment of rights constitutes a "transfer" under section 2(47) and any profit arising therefrom is taxable under section 45 as capital gains. The court rejected the contention that only a sale gives rise to capital gain, finding the diminished rights on reduced face value amount to transferable extinguishment. Case-Laws Income Tax Thu, 04 Sep 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5618