https://www.taxtmi.com/caselaws?id=253564 Chapter X transfer pricing provisions apply only where the underlying international transaction gives rise to income chargeable to tax under the Act. Share premium received on issue of equity shares is a capital receipt on capital account and does not become income unless specifically brought within section 2(24). The machinery provisions for arm's length pricing cannot alter the character of the receipt or create a tax charge where none exists. On that reasoning, the reference to the Transfer Pricing Officer, the show-cause notice and the transfer pricing order in relation to the share issue were without jurisdiction and liable to be quashed. en-us Mon, 13 Oct 2014 00:00:00 +0530 Wed, 18 Feb 2015 12:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=253564 Chapter X transfer pricing provisions apply only where the underlying international transaction gives rise to income chargeable to tax under the Act. Share premium received on issue of equity shares is a capital receipt on capital account and does not become income unless specifically brought within section 2(24). The machinery provisions for arm's length pricing cannot alter the character of the receipt or create a tax charge where none exists. On that reasoning, the reference to the Transfer Pricing Officer, the show-cause notice and the transfer pricing order in relation to the share issue were without jurisdiction and liable to be quashed. Case-Laws Income Tax Mon, 13 Oct 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=253564