Case Law Details
Mumbai ITAT Ruling – Section 92 of the Act is not an independent charging section to bring in a new head of income or to charge tax on income which is otherwise not chargeable under the Act. Accordingly, the ITAT held that, if no income accrues or arises or is received by the assessee under section 5, no notional income can be brought to tax under section 92 of the Act.
Shilpa Shetty vs. ACIT (ITAT Mumbai), ITA Appeal Nos. 2445/Mum/2014
Facts of the case:
Shilpa Shetty (the assessee), an individual, is a resident in India and is mainly engaged in the profession of film acting and also functions as a brand ambassador for various products.
For the financial year 2009-10, the assessee was a party to a share purchase agreement (SPA) signed by the existing shareholders of a Mauritius based company, EM Sporting Holding Limited (EMSHL) for transfer of a portion of shareholding of that company to Kuki Investments Ltd. (Kuki), represented by Raj Kundra (relative of the assessee or RK).
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