Capital gains advance ruling applications are admissible where the dispute concerns chargeability, not fair market value determination.

Questions directed to the chargeability of capital gains on a proposed transfer were not barred by the admissibility proviso, because they did not seek a ruling on valuation or determination of fair market value. The fact that capital gains computation may involve valuation did not, by itself, bring the application within the exclusion for matters requiring FMV determination. An objection based on alleged tax avoidance or profit shifting was treated as speculative and without a present legal basis, so it did not prevent admission of the application. The application was therefore maintainable and admitted for ruling, with any avoidance-related issue left for the merits stage.

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Issues: Whether the application for advance ruling was barred under the admissibility proviso on the ground that the questions involved valuation or determination of fair market value, and whether the objection based on alleged tax avoidance could prevent admission of the application.

Analysis: The questions raised were directed to the legal chargeability of capital gains on the proposed transfer and not to the quantification of consideration or valuation of the shares. The computation of capital gains may involve valuation, but that circumstance alone does not bring the application within the exclusion for matters requiring determination of fair market value. The objection founded on profit shifting or tax avoidance was treated as speculative and unsupported by a clear legal basis; it was not accepted as a present bar to admission. The authority also noted that any avoidance-related issue could be raised, if necessary, at the later stage of proceedings under the relevant provision governing the merits stage.

Conclusion: The application was held maintainable and admitted for ruling on the questions raised, while the avoidance objection was left open for consideration at the appropriate stage.

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