ITAT Allows Capital Loss of Rs 2,047 Crore for Tata Sons | India Business News

MUMBAI: The income-tax appellate tribunal (ITAT) has allowed a long-term capital loss of Rs 2,047 crore in the hands of Tata Sons for the financial year 2008-09. It quashed a revisionary order that was passed by the principal commissioner of income-tax against this loss-claim.
The loss arose owing to the reduction of paid-up share capital of Tata TeleServices (TTSL) under a court approved scheme.TTSL was engaged in the business of providing telecom services. In the years prior to 2008-09, it incurred substantial losses which had resulted in a large part of its paid-up share capital being utilised to finance/bear the loss. A scheme of restructuring was entered into by TTSL with its shareholders.
Tata Sons held 288,13,17,286 shares in TTSL, which was reduced to half on cancellation of the equity shares, pursuant to a scheme of arrangement under the provisions of the Companies Act, which was approved by the Delhi high court. In its I-T return for 2008-09, Tata Sons showed long-term capital losses of Rs 2,047 crore on account of reduction of its shareholding in Tata TeleServices.

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