https://www.taxtmi.com/caselaws?id=764517 The SC held that reduction of share capital by a subsidiary company resulting in proportionate reduction of the holding company's shareholding constitutes a transfer under Section 2(47) of the Income Tax Act, 1961. Following the precedent in Anarkali Sarabhai, the Court ruled that reduction of share capital involves the company purchasing its own shares, which falls within the meaning of "sale, exchange or relinquishment" under Section 2(47). The assessee's claim for capital loss on extinguishment of rights in shares was allowed, with the Court deciding in favor of the assessee. en-us Thu, 02 Jan 2025 00:00:00 +0530 Mon, 30 Jun 2025 15:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=764517 The SC held that reduction of share capital by a subsidiary company resulting in proportionate reduction of the holding company's shareholding constitutes a transfer under Section 2(47) of the Income Tax Act, 1961. Following the precedent in Anarkali Sarabhai, the Court ruled that reduction of share capital involves the company purchasing its own shares, which falls within the meaning of "sale, exchange or relinquishment" under Section 2(47). The assessee's claim for capital loss on extinguishment of rights in shares was allowed, with the Court deciding in favor of the assessee. Case-Laws Income Tax Thu, 02 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=764517