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2013 (4) TMI 446 - AT - Income TaxCalculation of capital gains – Additions were made in the total income of the assessee by the A.O. by taking the sale consideration of the shares @ 400/- per share, as against the actual sale consideration of Rs. 390/- per share by applying the RBI Guidelines related to pricing of shares. Held that - RBI Guidelines are Guidelines for the banks, issued for FEMA purposes. The very opening paragraph of these Guidelines shows that they are addressed to 'Authorised Dealer (AD) Banks'. Thus, the duty to examine the compliance or otherwise of these Guidelines lies squarely within the purview of the 'Authorised Dealer Banks' and not the Income-tax Authorities. If the assessee, in the view of the Income-tax Authorities, had committed any violation of these Guidelines, the appropriate course open to them was to bring it to the notice of the banks. No further. Then, since the Guidelines have been issued for FEMA purposes, it is the FEMA Authorities who are competent to take appropriate action against the assessee on breach of the Guidelines. Rather, it is seen that no objection whatsoever has been raised by the RBI. In view of the above, finding the grievance of the assessee to be justified, we accept it as such. Appeal allowed.
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