Taxability of transfer of shares of an Indian company from one non-resident to another non-resident for no consideration in the course of group reorganisation

Recently, the Authority for Advance Ruling (AAR) in the case of M/s Amiantit International Holding Ltd. [2010-TIOL-07-ARA-IT] held that the capital gains is taxable only when the applicant derive any profit or gain in the form of money or money’s worth or which is capable of being turned into money has accrued or arisen to the applicant. The charging section [section 45 of the Income Tax Act, 1961 (the Act)] relating to capital gains and the computation provisions (section 48 of the Act) must be read harmoniously. When there is a case for which the computation provision cannot be applied...