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Income deemed to accrue or arise in India SLP granted against High Courts ruling that where assessee-Mauritius company purchased shares and CCDs of a subsidiary of an Indian real estate company V and later on, V exercised a call option to purchase a part of above mentioned shares and CCD

SUPREME COURT OF INDIA

 

SPECIAL LEAVE TO APPEAL (C) NO. 680 OF 2015

 

Director of Income-tax, International Taxation-II, New Delhi.....................Appellant.
v.
Zaheer Mauritius .........................................................................................Respondent

 

RANJAN GOGOI AND ABHAY MANOHAR SAPRE, JJ.

 
Date :OCTOBER  21, 2016 
 
Appearances

Ms. Pinky Anand, ASG, S.A. Haseeb, Ms. Purnima Bhat Kak and Ms. Anil Katiyar, Advs. for the Petitioner. 
Percy Pardiwala, Sr. Adv. and R. Chandrachud, Adv. for the Respondent.


Section 9 read with section 2(28A) and 45 of the Income Tax Act, 1961—Income —Income deemed to accrue or arise in India—SLP granted against High Court's ruling that where assessee-Mauritius company purchased shares and CCD's of a subsidiary of an Indian real estate company V and later on, V exercised a call option to purchase a part of above mentioned shares and CCD's from assessee, since terms of arrangements between V and assessee revealed that same being a genuine commercial venture for development of land, such transaction could not be concluded as loan and therefore gains arising to assessee could not be taxable as interest under section 2(28A)—Director of Income Tax vs. Zaheer Mauritius.


ORDER


1. Leave granted.

2. Hearing expedited.

3. As prayed for, rejoinder affidavit, if any, may be filed.

 

[2016] 243 TAXMAN 511 (SC)

 
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