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1993 (4) TMI 218 - HIGH COURT OF BOMBAYCapital gains - Computation of -Assessment year 1974-75 - Assessee, a non-resident company, maintaining accounts in UK, sold certain shares of Rs. 10 at Rs. 22 per share in India - Cost of acquisition of such shares was Rs. 10 per share - Acquisition and transfer of these shares took place in India and purchase and sale prices were expressed in India - Assessee worked out capital gain by converting cost of acquisition of shares into pound sterling at the then prevailing exchange rate and also by converting sale price of shares into pound sterling at rate prevailing at the time of transfer - According to assessee, difference so arrived in pound sterling converted again into Indian rupee could only be treated as capital gain for purpose of assessment under Act - ITO, however, worked out capital gain by taking actual sale proceeds at rate of Rs. 22 and deducting therefrom cost of these shares at rate of Rs. 10 per share - Whether computation made by ITO was justified - Held, yes - Whether place where assessee resides and currency in which money is deposited in bank for purpose of purchase, etc., are relevant factors for determining income arising from transactions where cost of acquisition and consideration for transfer, etc., are all expressed in Indian rupee - Held, no
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