Transfer pricing comparables and operating income principles applied to software development services, with exclusions, inclusions, and tax credit ver...
Transfer pricing on performance guarantees and overdue receivables deleted where warranty obligations were embedded and working capital adjustment alr...
ITAT held that the allotment of shares at a lesser price than to a third party cannot be taxed u/s 28(iv) of the Income Tax Act, 1961. The receipt of property without consideration or for lesser consideration is taxable only u/s 56(2)(x)(c). In the absence of a charging provision, such a transaction of acquiring shares at par value compared to premium paid by a third party cannot be taxed. Furthermore, the transaction of acquiring shares is a capital field transaction, not a revenue field transaction. If the benefit does not arise from business or profession, it cannot be taxed u/s 28(iv). Since the income from sale of shares is taxable as capital gains, the acquisition cannot be treated as a revenue transaction. The decision was in favor of the assessee.
ITAT held that the allotment of shares at a lesser price than to a third party cannot be taxed u/s 28(iv) of the Income Tax Act, 1961. The receipt of property without consideration or for lesser consideration is taxable only u/s 56(2)(x)(c). In the absence of a charging provision, such a transaction of acquiring shares at par value compared to premium paid by a third party cannot be taxed. Furthermore, the transaction of acquiring shares is a capital field transaction, not a revenue field transaction. If the benefit does not arise from business or profession, it cannot be taxed u/s 28(iv). Since the income from sale of shares is taxable as capital gains, the acquisition cannot be treated as a revenue transaction. The decision was in favor of the assessee.
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