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2014 (11) TMI 1194 - HC - Income TaxTransfer pricing adjustment - difference between the ALP at which the equity shares had to be issued and the prices at which the equity shares have actually been issued - income chargeable to tax - Whether issue of shares at a premium by the Petitioner to its non-resident holding company gave rise to any income from an admitted International Transaction? - HELD THAT:- The issue arising in the present Petition stands concluded in favour of the Petitioner by virtue of Vodafone IV. [2014 (10) TMI 278 - BOMBAY HIGH COURT] stating neither the capital receipts received on issue of equity shares to its holding company, a non-resident entity, nor the short-fall between the so called fair market price of its equity shares and the issue price of the equity shares can be considered as income within the meaning of the expression as defined under the Act. We set aside the order of TPO to the extent it seeks to bring to tax the shortfall in the consideration received on issue of shares when compared to the ALP at which the shares ought to have been issued and the consequent deemed interest on the alleged shortfall, is quashed and set aside. As a consequence, Draft Assessment Order is also set aside to the extent the order of TPO is set aside. - Decided in favour of assessee.
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