Law:

Section:

JUDGMENT 1. In this Petition under Article 226 of the Constitution of India, Petitioner challenges the Show Cause Notice dated 17 January 2014 and the order dated 30 January 2014 issued by Respondent No.2- Transfer Pricing Officer (TPO) under Section 92CA (3) of the Income Tax Act, 1961 (the Act). 2. Brief facts leading to this Petition are as under:- (a) The Petitioner is a wholly owned subsidiary of a Mauritian entity namely Vodafone Tele-services (India) Holdings Ltd (the Holding Company); (b) On 16 July, 2009, the Petitioner allotted 4,58,372 equity shares of Rs.10/- each at premium of Rs.7,100/- per share (total price being Rs.7,110/- per share), aggregating to a total consideration of Rs.325.90 crores to its holding company; (c) On 24 January 2010, the Petitioner allotted further 1,02,659 equity shares of Rs.10/- each at premium of Rs.6,437/- per share (total price being Rs.6,447/- per share) aggregating to total consideration of Rs.66.18 Crores to its holding company. Thus, in the Financial Year 2010-11, the Petitioner allotted an aggregate of 5,61,031 equity shares at an aggregate consideration of Rs.392.08 Crores after determining its valuation in terms of CCI guidelines; (d) On 14 October 2010, the Petitioner filed its return of Income for Assessment Year 2010-11. Along with its return of Income, the Petitioner filed Form 3 CEB in relation to its International Transaction. However, by way of abundant caution, the Petitioner appended a note thereto as under:- "Note 1:- The Company has issued Equity Shares of Rs.10 each fully at a premium. As per Section 92(1) of the Income Tax Act, 1961 any income arising from an international transaction shall be computed having regard to the arm's length price. This transaction of issue of Equity Shares does not affect Income of the Company. However, out of abundant caution, the same is reported here. The company has also received Share Application Money for issue of Equity Shares." (e) Respondent No.3 - Assessing Officer issued notice dated 27 August 2011 under Section 143(2) of the Act, directing the Petitioner to submit certain details for carrying out a scrutiny assessment under Section 143(3) of the Act; (f)…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492