Section 47(iii) — the law in short
What the courts have decided on section 47(iii), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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PCIT v Redington (India) Ltd
High CourtHelps department
Our company transferred shares to a group entity without consideration. Is that a gift outside capital gains under s.47(iii)?
No, not on these facts. A transfer without a price is not automatically a gift. The Court applied s.122 of the Transfer of Property Act and found neither of the two essentials - the transfer was not voluntary, and it was made for consideration in the shape of the private equity investment the restructuring was built around. The transfer therefore attracted s.45 and was chargeable as capital gains.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.