No addition of LTCG from sale of share as Explanation 7 of Section 9(1)(i) had retrospective effect

CIT Vs Augustus Capital Pte Ltd (Delhi High Court) Conclusion: Gains arising from sale of a share of a company incorporated overseas, which derives less than 50% of its value from assets situated in India would certainly not be taxable under section 9(1)(i) of the Act read with Explanation 5 thereto. Held: Assessee-company incorporated under the laws of Singapore. It had invested in equity and preference shares of Accelyst Pte Ltd [ “APL”], a company incorporated in and resident of Singapore. The total value of the investments assessee made in APL was Rs. 4,91,20,000/-. Assessee sold its ...