Advance Ruling on entitlement of a non-resident company inter alia to benefits of section 55(2)(b)(i) of IT Act in respect of bonus shares allotted to it by an Indian company

SUMMARY OF ADVANCE RULING In the case of a capital asset falling within the ambit of clause (b) of section 55(2), acquired before 1-4-1981, the cost of acquisition can be taken as fair market value of that asset as on 1-4-1981.  RELEVANT PARAGRAPH 13. To appreciate the above rival contentions, it would be worthwhile to refer to relevant provisions of the Act i.e. section 48 and section 55(2) respectively. Section 48 provides for the computation of capital gains. The key factors to be taken into account while computing the capital gains are (1) the full value of consideration for transfer (ii)...