Law:

Section:

2008] 307 ITR 324 [2008] 175 TAXMAN 353 (AAR - NEW DELHI) AUTHORITY FOR ADVANCE RULINGS (INCOME-TAX), NEW DELHI Burmah Castrol Plc.* , In re JUSTICE P.V. REDDI, CHAIRMAN A. SINHA AND RAO RANVIJAY SINGH, MEMBER AAR NO. 772 OF 2008 NOVEMBER 19, 2008 Section 112 of the Income-tax Act, 1961 - Capital gains - Tax on long-term capital gains - Assessment year 2002-03 - Whether applicability of second proviso to section 48 is a condition precedent for availing of benefit of lesser rate of tax of 10 per cent under proviso to section 112(1) - Held, no - Applicant, a non-resident company of U.K., has earned long-term capital gains on sale of certain equity shares of an Indian company, being listed securities - Whether applicant can avail of benefit of lesser rate of tax of 10 per cent on such capital gains under proviso to section 112(1) - Held, yes Section 48 of the Income-tax Act, 1961 - Capital gains - Computation of - Assessment year 2002-03 - Applicant, a non-resident company, acquired certain shares of an Indian company as per directions of SEBI, and besides payment of price, it also paid a further sum to shareholders of said Indian company as interest for delay in making open offer - Subsequently, it sold said shares to other company giving rise to long-term capital gain to it - Whether while calculating amount of long-term capital gain chargeable to tax, interest paid by applicant to shareholders of Indian company as per directives of SEBI would also be treated as a part of cost of acquisition of shares - Held, yes FACTS The applicant is a non-resident company. During the financial year 2001-02, as per the directive of the SEBI, it acquired certain equity shares of an Indian company and besides payment of price, also paid a further amount to shareholders of the said Indian company as interest for delay in making the open offer. Subsequently, the applicant sold said shares to other company giving rise to long-term capital gain to it. The applicant seeks advance ruling on the following two questions : (i)Whether, on the stated facts and in law, the tax payable on the long-term capital gains arising on sale of equity shares of Indian company being listed securities,…

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