Ultimate Holding Company should not be considered as beneficial owner of gains arising to Subsidiary Company on sale of investments held by such Subsidiary Company

Facts The applicant, a Dutch company was incorporated on 11 August 2008. On 6 November 2008, it acquired all the shares of an existing Indian company from another group company located in Germany. The shares were acquired for a consideration of INR 100 million. Post acquisition, the applicant made a further investment of INR 1100 million in the Indian subsidiary company. Both the companies (Dutch Company and German Company) are ultimately held by another German company with extensive manufacturing operations in Europe. The applicant is now proposing to sell the shares of the Indian subsidiary...