TaxTMI 
TaxTMI 
2024 (1) TMI 484
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....TION OF THE NATURE OF INCOME AND CONSEQUENT TAX RATE FROM 10% TO 40%: 1.1 On the facts and circumstances of the case and in law, the Ld. AO/DRP has erred in considering the "lull value of consideration" at Rs. 39,54,26,400/- towards the sale of shares by ignoring an unambiguous language of the provisions of Section 48 of the Act relating to computation of capital gains. 1.2 On the facts and circumstances of the case and in law, Ld. AO/DRP has erred in their understanding that Section 50CA of the Act, read with Rule 11UAA of the Income-tax Rules, 1962 ('Rules'), provides an upper limit for the valuation of share price considered for computing capital gains under the Act. 1.3 On the facts and circumstances of the ca....
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....7 of the Act. 1.6 On the facts and circumstances of the case and in law, the Ld. AO/DRP has erred in ignoring that the income cannot be chargeable to tax in India under the head 'income from other sources', as per Article 21 of the India-Germany DTAA. 1.7 On the facts and circumstances of the case and in law, the Ld. AO/DRP has failed to consider the fact that as per Article 13 of the India-Germany DTAA, entire gains rising on the transfer of shares in India should be chargeable as 'capital gains' income and no further restriction regarding the method of computation of such income has been specified therein unlike the Act. 1.8 On the facts and circumstances of the case and in law, the Ld. AO/DRP has erred in alleg....
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....any and is a tax resident of Germany. During the Year, the assessee was engaged in manufacturing & selling storage, packing & shelves systems, and plastic containers. The assessee had a 50:50 joint venture with Nilkamal Limited. The Joint Venture Company was called M/s Nilkamal Bito Storage Systems Private Limited ("J.V. Company"). The assessee sold 100% stake in the J.V. Company to Nilkamal Limited for a total consideration of Rs. 51,73,35,000/- at a value of Rs. 233/- per share. The assessee claimed the cost of acquisition amounting to Rs. 22,15,50,000/- and offered the difference of Rs. 29,57,85,000/- to Capital Gains tax as per the applicable provision of the Income-tax Act, 1961. 4. For the subject transaction, the Appellant had als....
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....he assessee obtained a report from M/s SSPA & Co., Chartered Accountants. As per this report, the value of shares on Comparable Companies Multiple Method under market approach ('CCM') was determined at Rs. 242.21 per share. * For the purposes of determining the value of the unquoted shares under Section 50CA / Rule 11UAA, a valuation report from M/S Jagdish V Rajgor & Co, Chartered Accountants was obtained who determined the value @ Rs. 178.12 per share based on NAV method. * The sale of above unquoted shares was effected at a negotiated price of Rs. 233 per share, which is more than minimum floor price under Section 50CA and within the ceiling price as per FEMA. * The AO held that the value determined as per Rule....