Assessee: Tata Sons Limited
Decision by: The Income Tax Appellate Tribunal, Mumbai
Assessment Year: 2009-10
Date of Order: 23.01.2024
Facts of the case
»As on 01/04/2008, the assessee was holder of 288,13,17,286 equity shares in Tata Tele-Services Company Ltd. (TTSL) acquired at various points of time.
» Because of substantial loss, TTSL announced a Scheme of Capital reduction whereby the paid-up equity share capital of TTSL was to be reduced by way of reduction of the number of equity shares of the company of Rs. 10/- each from 634,71,52,316 shares to 317,35,76,158 shares; by reducing the said amount from the accumulated debit balance in the Profit & Loss Account and by reduction from Share Premium Account
» In terms of this Scheme, no consideration was payable to the shareholders in respect of the shares which were to be cancelled. As a result, assesse's shareholding of 288,13,17,286 equity shares in TTSL were reduced to half, i.e., 144,06,58,643.
» The said scheme was approved by the Hon'ble Delhi High Court vide judgment and order dated 07/11/2008.
» In the return of income for the A.Y. 2009-10 filed on 30/09/2009, assessee had shown long-term capital loss on reduction on the shares of TTSL and claimed a loss of INR 2046,97,54,090.
» Assessing officer accepted the loss. and passed the order accordingly.
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