Supreme Court of India

Kartikeya V. Sarabhai v. Commissioner of Income Tax

Neutral citation
Reported as [1997] SUPP. 3 S.C.R. 746
Bench B.N. Kirpal and K.T. Thomas JJ.
Decided 4 September 1997

INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.

4 Supreme Court benches have cited this judgment.

From the headnote

Income Tax Act, 1961-Sections 2 (47) and 45. Capital gains-Transfer of capital asset-Reduction in face value of shares-Amounts received by holder of such shares on reduction-Held, is transfer within the meaning of S. 2( 47) and taxable as capital gains. Companies Act 1956-Sections 87(2)(c) and lOo-Reduction in face value of shares-Amounts received by the holder of such shares 011 reduction is subject to capital gains. The Appellant had purchased 90 non-cumulative preference shares of a Company, each of the face value of Rs. 1,000 at a price of Rs. 420 per share. Earlier in 1965, a sum of Rs.

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