Home Case Index All Cases Income Tax Income Tax + AAR Income Tax - 2011 (5) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (5) TMI 561 - AAR - Income TaxAdvance ruling - transfer of shares would be voluntarily and without any consideration, the applicants, GTRC and GOCPL desire to know their tax liabilities under the Income Tax Act, 1961 - The possibility of applicant – Held that:- The transferor improving its overall business by virtue of re-organization and the mere possibility or chance of the applicant making better returns in the near or distant future as a consequence of reorganization can hardly be regarded as a consideration accruing or arising to the transferor when he has no right to receive a definite or an ascertainable amount or benefit from the transferee - As GIL is a company in which public is substantially interested and its shares are listed on BSE, any income arising from the transfer of the shares (long-term capital asset) are otherwise exempt under section 10(38) of the Act. The revenue has not challenged the averments made on behalf of the applicant and its application on the facts of the case - As there is no income liable to tax in the hands of the applicant, the provision of section 92 to 92F of the Act will not be applicable and the transfer pricing provision in Chapter X are not attracted - When the income is not chargeable to tax as per the finding recorded above, the question of withholding of tax does not arise - All questions are answered in the affirmative, and ruled accordingly
|