Transfer Pricing Officer: Quasi-capital are treated differently than normal loan transactions

Bilakhia Holdings Pvt. Ltd. Vs ACIT (ITAT Surat) Facts- The Assessee Company being an investment company had received shares from its Promoters as a gift. The AO dismissed this claim stating that it was purchased by the assessee company at a discount from the said Promoters and that consideration was involved. Hence, AO disallowed the Long Term Capital Loss claimed by the assessee of Rs. 2 cr (approx). The Commissioner purports to treat the said transaction as a loan transaction and since the parties to the transaction are Associated Enterprise (AE), the interest rate should have been calculat...