https://www.taxtmi.com/caselaws?id=252144 The HC held that amounts received on issue of shares, including premium, to a non-resident holding company are capital receipts and do not constitute income under the Act. The share premium is taxable only by legal fiction under Section 56(2)(viib) and applies to issues to residents, not non-residents, to avoid discouraging foreign capital inflow. The petitioner's issuance of shares at a premium to its non-resident holding company does not give rise to income from an international transaction; thus, Chapter X provisions are inapplicable. The court affirmed that the transfer pricing adjustment cannot be made on capital receipts and ruled in favor of the assessee, dismissing the Revenue's contention that the issue price below fair market value triggered income tax liability. en-us Fri, 10 Oct 2014 00:00:00 +0530 Thu, 16 Jul 2026 17:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=252144 The HC held that amounts received on issue of shares, including premium, to a non-resident holding company are capital receipts and do not constitute income under the Act. The share premium is taxable only by legal fiction under Section 56(2)(viib) and applies to issues to residents, not non-residents, to avoid discouraging foreign capital inflow. The petitioner's issuance of shares at a premium to its non-resident holding company does not give rise to income from an international transaction; thus, Chapter X provisions are inapplicable. The court affirmed that the transfer pricing adjustment cannot be made on capital receipts and ruled in favor of the assessee, dismissing the Revenue's contention that the issue price below fair market value triggered income tax liability. Case-Laws Income Tax Fri, 10 Oct 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=252144