Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2019 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (7) TMI 390 - HC - Income TaxTP Adjustment - share application money remained parked with AE - re-characterize the transaction - Department holds a belief that for the period during which the share application money remained parked with AE, the same should be brought to tax on notional interest basis - Tribunal made an interim judgment deleting the addition on the ground that the Assessing Officer cannot re-characterize the transaction - HELD THAT:- The facts as noted, are not seriously in dispute. The assessee’s share application money remained with its AE for a considerable period of time before the shares were allotted. AO, therefore, treated this transaction as one of loans. It was under similar circumstances that this Court Pr. Commissioner of Income Tax-6 Versus M/s. Aegis Limited - [2019 (4) TMI 858 - BOMBAY HIGH COURT] dismissed Revenue’s facts on record would suggest that the assessee had entered into a transaction of purchase and sale of shares of an AE. Nothing is brought on record by the Revenue to suggest that the transaction was sham. In absence of any material on record, the TPO could not have treated such transaction as a loan and charged interest thereon on notional basis. No question of law arises
|