https://www.taxtmi.com/caselaws?id=16516 The Supreme Court ruled that the reduction of share capital in exchange for assets attracts capital gains tax for shareholders. The decision clarified that relinquishment or extinguishment of a right in an asset constitutes a transfer of a capital asset, leading to taxation under section 45 of the Act. The Court's interpretation aligned with section 2(47) of the Act, making any profit or gain arising from such transfer taxable. Consequently, the Court decided in favor of the Revenue, affirming the tax liability on the surplus generated from the transaction. en-us Thu, 13 Nov 1997 00:00:00 +0530 Tue, 08 Sep 2009 12:48:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=16516 The Supreme Court ruled that the reduction of share capital in exchange for assets attracts capital gains tax for shareholders. The decision clarified that relinquishment or extinguishment of a right in an asset constitutes a transfer of a capital asset, leading to taxation under section 45 of the Act. The Court's interpretation aligned with section 2(47) of the Act, making any profit or gain arising from such transfer taxable. Consequently, the Court decided in favor of the Revenue, affirming the tax liability on the surplus generated from the transaction. Case-Laws Income Tax Thu, 13 Nov 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=16516