TaxTMI 
TaxTMI 
2022 (7) TMI 1289
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....are as follows:- Aggrieved by the order passed by the Commissioner of Income Tax (Appeals)-57, Mumbai [hereinafter referred to as the 'learned CIT(A)'] dated 11 January 2019 under section 250 of the Income-tax, 1961 (Act) and based on facts and circumstances of the case, JP Morgan Funds ('the appellant') respectfully submits that the learned CIT(A) erred in partly upholding the order of the Deputy Commissioner of Income-tax (International Taxation) 3(1)(1), Mumbai (hereinafter referred to as the learned Assessing Officer) on the following grounds: 1. In treating the cost of acquisition of the bonus debentures received from Blue Dart Express Limited (BDEL) in the nature of 'dividend' [as defined under section 2(22)(b) of the Act,....
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....tion made has stated that, if the amount of Rs. 13,85,580/- is allowed to the assessee as exempt income of the current assessment year at any stage of appeal, then the cost of acquisition of these debentures should be treated as Nil while computing the capital gains on sale of these debentures as and when such transactions happens. I have gone through the appellant's submission. I find that appellant's submission are not tenable. The Assessing Officer has rightly stated that cost of acquisition of these debenture should be taken as NIL because these are bonus debenture and appellant has not incurred any cost for its acquisition. Hence this ground of appeal is dismissed. 4. The assessee is not satisfied and is in....
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....al gains. In this connection, reliance is placed on a decision of the Supreme Court in the case of Commissioner of Income-tax v Narasimhan (236 ITR 327) [copy enclosed as Annexure 21. In the said case the share capital of the company was reduced by a scheme of capital reduction and the difference between the face values was paid to the shareholders. The Supreme Court held that as per section 2(22)(d) of the Act, the payment which represented accumulated profits should be regarded as dividend and taxed accordingly. The balance amounts (representing the pro-rata distribution of assets) should be treated as a capital receipt. It further held that in order to compute capital gains, if any, in the hands of the shareholder, the portion attributab....
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....he assessee in consideration of the dividend, which was received by a merchant banker on his behalf and reinvested by the merchant banker in debentures issued by the BDEL. The nature of this transaction is aptly described in the notes to accounts of Blue Dart Express Ltd- a copy of which is placed before us at page 82 of the paper book. The relevant note is as follows:- During the year, in terms of the Scheme of Arrangement ("the Scheme") between the Company and its Members, duly approved by the Hon'ble Bombay High Court on September 19, 2014, the Company delivered an amount of Rs. 33,219 Lacs being the amount equal to the aggregate value of the Debentures to a merchant banker appointed by the Board on behalf of and as agent an....