Delay in allotment of shares could not be the basis to treat investment in share application money as Loan in hands of Overseas AE

Aries Agro Limited Vs Assessment Unit (ITAT Mumbai) Conclusion: Where no income had accrued from the transaction of remittance of share application money by assessee to its overseas AE, then such transaction could not be subjected to the transfer pricing provisions and AO was not justified in treating the share application money as interest free loan/advance to AE. Held: During the assessment proceeding, AO noted that appellant had entered into International Transaction which was Associated Enterprises [AE] during the relevant previous year and therefore, a reference was made to TPO for the co...