Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (12) TMI 58 - HC - Income TaxApplicability of Chapter X - Issue of equity shares to AE – Conversion of preference shares into equity shares held by AE – Held that:- Following the decision in Vodafone India Services Pvt. Ltd. Versus Union of India, Addl. Commissioner of Income Tax, Dy. Commmissioner of Income Tax [2014 (10) TMI 278 - BOMBAY HIGH COURT] - there is a short fall in the amounts received on issue of equity shares and conversion of Preference shares into equity shares when benchmarked against the Arm’s Length Price (ALP) to be received on issue and conversion - This short fall is characterized as income arising from International Transactions and is being subjected to tax for Assessment Year 2010-11 – The issue of shares at a premium does not exhaust the universe of applicability of Chapter X of the Act - There are transactions which would otherwise qualify to be covered by the definition of International Transaction - the order of the Tribunal is upheld – Decided against assessee.
|