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Jan 23, 2026
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ITAT Delhi rejects Rs 2.53 crore STCG on reduced property interest caused by share dilution; Lady succeeds in ITAT for this reason
On November 14, 2025, the Income Tax Appellate Tribunal (ITAT) Delhi bench ruled that the dilution of shareholding due to issue of fresh shares doesn't count as 'transfer' of interest in the company's assets. Therefore it won't trigger capital gains tax as long as the shareholder hasn't sold or relinquished any rights.
A brief overview about the property
A search and seizure operation took place at Ms Aeren's residence in Vasant Kunj and at the AEC group of companies' offices on August, 17, 2011. During this search, tax officers discovered a memorandum of understanding (MoU) between Mr. Gupta and Ms Aeren dated August 10, 2011. This MOU was seized by the tax dept, which revealed a property valued at Rs 150 crore located on Prithviraj Road, New Delhi.
This property was co-owned equally, with each of the two companies, Sh and Sn Private Limited, holding 50%. Ms Aeren owned 22,500 shares (2.25%) in each of these two companies (Sh and Sn private limited) during FY2010-11.
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