High Court Takes Liberal View About Tax Planning Scheme

---------- Forwarded message ----------

From: editor@itatonline.org <itatonline.org@gmail.com>
Date: Sat, Sep 1, 2012 at 9:49 AM
Subject: Message from EGroup of SolapurCAs High Court Takes Liberal View About Tax Planning Scheme
To: editor@itatonline.org

 

Dear Subscriber,

 

The following important judgement is available for download at itatonline.org.

ACIT vs. Biraj Investment Pvt. Ltd (Gujarat High Court)

Transaction of "sale" of "pledged" shares at loss to a group company with object to set-off loss against gains is not a "colourable transaction"

 

The assessee earned capital gains on sale of certain shares. To offset the gains, the assessee sold shares of another company, which were pledged to IDBI, to a group company, at a loss. The AO & CIT(A) treated the transaction of sale to the group company as a "colourable device" & rejected the loss on the ground that as the shares were pledged, they could not have been sold. However, the Tribunal allowed the assessee's claim. On appeal by the department to the High Court, HELD dismissing the appeal:

(Click Here To Read More)

Regards,

Editor,

itatonline.org

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