https://www.taxtmi.com/caselaws?id=15261 In computing long-term capital gains on sale of shares, the issue was whether any portion of the sale consideration could be excluded as consideration for transfer of "controlling interest" distinct from the shares. The HC held that "controlling interest" is inseparable from ownership of shares because control over management arises only through voting rights attached to the shares and the resultant ability to influence the board. Accordingly, the entire price paid by the purchaser represents consideration for acquisition of the shares and must be included in full for capital gains computation. The assessment treating the full consideration as long-term capital gains was upheld, and the reference was answered in favour of the Revenue and against the assessees. en-us Thu, 22 Apr 1999 00:00:00 +0530 Thu, 01 Jan 2026 00:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15261 In computing long-term capital gains on sale of shares, the issue was whether any portion of the sale consideration could be excluded as consideration for transfer of "controlling interest" distinct from the shares. The HC held that "controlling interest" is inseparable from ownership of shares because control over management arises only through voting rights attached to the shares and the resultant ability to influence the board. Accordingly, the entire price paid by the purchaser represents consideration for acquisition of the shares and must be included in full for capital gains computation. The assessment treating the full consideration as long-term capital gains was upheld, and the reference was answered in favour of the Revenue and against the assessees. Case-Laws Income Tax Thu, 22 Apr 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15261