9911796707
TMI Blog2024 (12) TMI 1104X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of sale of shares of foreign company. Accordingly, we affirm the order passed by the CIT(A) on this issue. Appeal filed by the Revenue is dismissed. - Shri Br Baskaran (Accountant Member) And Shri Raj Kumar Chauhan (Judicial Member) For the Assessee : Mr. Rajesh Athavale For the Revenue : Dr. K.R. Subhash, CIR-DR ORDER PER BR BASKARAN, AM The Revenue has filed this appeal challenging the order dated 05.12.2023 passed by the Ld. CIT(A), NFAC Delhi and it relates to the assessment year 2016-17. 2. The only issue in this appeal is whether the Ld. CIT(A) was justified in holding that the assessee is entitled to deduct indexed cost of shares of foreign company while computing the long term capital gain. 3. The facts relating to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... record. The mode of computation of long term capital gain is prescribed in section 48 of the Act and the benefit of cost of inflation index is given under the second proviso to section 48 of the Act. For the sake of convenience, we extract below the relevant provisions:- 48. Mode of computation. -The income chargeable under the head Capital gains shall be computed, by deducting from the full value of the consideration received or accruing as a result of the transfer of the capital asset the following amounts, namely:- (i) expenditure incurred wholly and exclusively in connection with such transfer; (ii) the cost of acquisition of the asset and the cost of any improvement thereto: (iii) in case of value of any money or capital asset received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ost of acquisition and cost of any improvement , the words indexed cost of acquisition and indexed cost of any improvement had respectively been substituted: [Provided also that nothing contained in the first and second provisos shall apply to the capital gains arising from the transfer of a long-term capital asset being an equity share in a company or a unit of an equity oriented fund or a unit of a business trust referred to in section 112A:] [Provided also that nothing contained in the second proviso shall apply to the long-term capital gain arising from the transfer of a long-term capital asset being bond or debenture other than (a) capital indexed bonds issued by the Government: or (b) Sovereign Gold Bond issued by the Reserve Bank of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as Cost Inflation Index for the year in which the asset is transferred bears to the Cost Inflation Index for the year in which the improvement to the asset took place;] (v) [ Cost Inflation Index , in relation to a previous year, means such Index as the Central Government may, having regard to seventy-five per cent. of average rise in the Consumer Price Index for urban non-manual employees for the immediately preceding previous year to such previous year, by notification in the Official Gazette, specify, in this behalf.] 6.1 On a careful perusal of the above said provisions, it can be noticed that the first proviso is applicable only to the non-residents. Since the assessee herein is a resident, the first proviso will not apply to it. The s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d shares in the foreign company by using foreign currency and this fact has been noted by the Tribunal in Paragraph 1.7(b) of the order, which reads as under:- b. Investment in shares was made by the Bank and its offshore subsidiaries in foreign currency However, in paragraph 12(i) of the order, the Tribunal has proceeded to render its decision on the understanding that the investments have been made in Indian Currency, which is discernible from the following observations made by the Tribunal:- .. Undisputedly, all these acquisitions have been made by the assessee in Indian Currency and sold and ultimately the consideration was received in India in Rupees .. Accordingly, he submitted that, in view of the lack of clarity on facts, the parity ..... X X X X Extracts X X X X X X X X Extracts X X X X
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