Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (6) TMI 288 - AT - Income TaxCapital gain on transfer of shares outside India - incidence of levy u/s. 45 - applicability of section 9 income deemed to accrue or arise in India - eligible transfer u/s 2(47) - Held that:- There was no transfer of capital asset u/s 45 - assessee had transferred the Interest/(stake)in itself outside India to SSPL - thus the concept of ‘creating of interest in any assets in any manner’ and transferring‘interest/stake’ was not part of the word ‘transfer’. As far applicability of Explanation 5 of the section 9 is concerned, it is sufficient to state that the explanation covers the non residents and not a resident entity. There is no doubt that the assessee is a resident company. A citizen is perfectly entitled to exercise his ingenuity so to arrange his affairs as may make it possible for him legally and lawfully not to pay tax - thus for not extending cooperation the assessee should be dealt with relevant provisions of the Act. But, for that tax liability cannot be fastened to it without establishing the basic fact of existence and transfer of capital asset - hence we reverse the order of the FAA and decide effective ground in favour of the assessee.
|