TP: Redeemable preference shares cannot be treated as equivalent to interest free loans & advances

Pr. CIT Vs M/s. Aegis Limited (Bombay High Court) Conclusion: Transaction of purchase and sale of redeemable preference shares could not be regarded as being equivalent to interest free loans advanced by assessee to the AE & charge notional interest thereon as the apparent transaction could not be disregarded and substituted without any material or exceptional circumstances pointing out that assessee had tried to conceal the real transaction. Thus, TPO could not question the commercial expediency of assessee entered into such transaction. Held: Assessee had subscribed to redeemable prefer...