2013 (3) TMI 413

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....arma. For the Respondent Percy J. Paradiwalla, H.R. Rao, Mukesh Bhutani and Rahul Yadav. JUDGMENT:- Badar Durrez Ahmed, J. - This writ petition has been filed by the department against the advance ruling order dated 02.05.2011 given by the Authority for Advance Rulings (A.A.R). The crux of the matter is that 74% shares of Goodyear India Limited were held by a USA company by the name of Go....

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....sideration would be exempted from income-tax in view of the specific provisions of section 10(38) read with Chapter VII of the Finance (No.2) Act, 2004 . We may point out that Chapter VII of the said Finance (No.2) Act, 2004 pertains to securities transaction tax. Section 97(13) of the said Finance Act defines 'taxable securities transaction' in the following manner:-      "....

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....specified in the corresponding entry in column in column (3) of the said Table, on the value of such transaction and such tax shall be payable by the purchaser or the seller, specified in the corresponding entry in column (4) of the said Table:" 4. Reading the said provisions together with section 10(38) of the said Act, it is apparent that income arising from the transfer of a long term capita....

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....r the Singapore company would be liable to any tax in respect of the proposed transfer of the 74% share- holding in Goodyear India Limited. The A.A.R. also observed that for the same reason this was a complete answer to the revenue's argument that the transactions were part of a design of 'treaty shopping'. The argument of the revenue was that if the share-holding remained with the USA company and....