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2011 (5) TMI 239 - AAR - Income TaxTransfer of shares - Taxable or not - the applicant, Deere & Company, USA, is a foreign company incorporated under the laws of the USA. It has worldwide subsidiaries -John Deere India Private Limited (JDIPL) is a company incorporated in India and is a subsidiary of the applicant - Hence, unable to perceive as to how any profit or gain has accrued or arisen to the applicant by virtue of the transfer of shares to its subsidiary company - It is not possible to identify or pinpoint anything which has the characteristic of profit or gain or any consideration which is capable of being valued in praesenti - the income in the sense of profit and gain should be real but not hypothetical income - Decided in favour of assessee. Arm's length price - The transfer of share VNU International to IMS AG is not liable to be taxed in India and also does not attract the transfer pricing provisions of sections 92 to 92F of the Act. TDS - transfer of shares is not taxable in India and therefore deduction of tax does not arise. Return - In the recent rulings in VNU International B.V.'s case and ABC, [2011 -TMI - 202806 - AAR (INCOME-TAX) NEW DELHI] has held that when there is chargeability under the Income-tax Act notwithstanding that no tax may be payable, there is an obligation to file a return under section 139 of the Act - Thus, the applicant is bound to file the return.
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