Supreme Court · 2008 INSC 1299 · Decided 14 November 2008
Khoday Distilleries LTD. v. Commissioner of Income Tax and ANR.
- Court
- Supreme Court of India
- Citation
- 2008 INSC 1299 · [2008] 15 S.C.R. 1133
- Case number
- CIVIL APPEAL No. 6654/2008
- Decided
- 14 November 2008
- Bench
- S.H. KAPADIA, B. SUDERSHAN REDDY (2-judge bench)
- Outcome
- Appeal(s) allowed
- Case type
- Civil
Headnote
Gift Tax Act, 1958: ss. 2(xii), 4(1) - Rights issue by Company - Not c subscribed by shareholders - Allotment to remaining shareholders-investment companies - Liability of Company to pay gift tax - Held: Such allotment was not transfer - There was no element of existing right - Thus, in terms of s. 2(xii)- Deemed gift uls. 4(1)(a) also not attracted D - In any event, liability to: pay gift tax would be on donor- shareholder who exercised the option to renounce and. not on the company - Despite decision of Appellate Authority, Department did not initiate gift tax proceedings
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