Nomura India Investment Fund Mother Fund v. Addl. DIT (IT)

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The Tax PublishersITA No. 8140/Mum/2010 2020 TaxPub(DT) 0131 (Mum-Trib) : (2020) 203 TTJ 0660 IN THE ITAT, MUMBAI BENCH SAKTIJIT DEY, J.M. & MANOJ KUMAR AGGARWAL, A.M. Nomura India Investment Fund Mother Fund v. Addl. DIT (IT) ITA No. 8140/Mum/2010 24 December, 2019 Appellant by: J.D. Mistry Respondent by: Ajay Kumar ORDER *Saktijit Dey, J.M.* The captioned appeal by the assessee is directed against the Order, dt. 8-9-2010 of learned Commissioner (Appeals)-11, Mumbai, pertaining to assessment year 2007-08. 2. Ground No. 1 basically relates to the cost of acquisition of shares of Bajaj Hindustan Ltd. released against cancellation of Global Depository Receipts (GDRs). 3. Briefly, the facts are, as stated by the assessing officer, the assessee is an approved sub-account of The Master Trust Bank of Japan Limited, a Foreign Institutional Investor (FII) registered with Securities and Exchange Board of India (SEBI). Accordingly, provisions of section 115 AD of the Income tax Act, 1961 are applicable for taxing the income earned by the assessee. For the assessment year under dispute, the assessee filed its return of income on 26-7-2007 declaring total income of Rs. 345,45,121,702. In the said return of income, assessee had claimed Short term Capital loss at Rs. 12,49,42,867. In the course of assessment proceedings, while examining the aforesaid claim of loss by the assessee, the assessing officer found that the assessee had issued GDRs against underlying shares of Bajaj Hindustan Ltd. to non residents on 27-1-2006. The holders of said GDRs wanted to redeem them against underlying shares and, ultimately, GDRs were cancelled on 11-4-2006 and underlying shares were released which were sold in Bombay Stock Exchange (BSE) on 11-4-2006. SUBSCRIBE FOR FULL CONTENT

The Tax PublishersITA No. 8140/Mum/2010
2020 TaxPub(DT) 0131 (Mum-Trib) : (2020) 203 TTJ 0660

IN THE ITAT, MUMBAI BENCH

SAKTIJIT DEY, J.M. & MANOJ KUMAR AGGARWAL, A.M.

Nomura India Investment Fund Mother Fund v. Addl. DIT (IT)

ITA No. 8140/Mum/2010

24 December, 2019

Appellant by: J.D. Mistry

Respondent by: Ajay Kumar

ORDER

Saktijit Dey, J.M.

The captioned appeal by the assessee is directed against the Order, dt. 8-9-2010 of learned Commissioner (Appeals)-11, Mumbai, pertaining to assessment year 2007-08.

2. Ground No. 1 basically relates to the cost of acquisition of shares of Bajaj Hindustan Ltd. released against cancellation of Global Depository Receipts (GDRs).

3. Briefly, the facts are, as stated by the assessing officer, the assessee is an approved sub-account of The Master Trust Bank of Japan Limited, a Foreign Institutional Investor (FII) registered with Securities and Exchange Board of India (SEBI). Accordingly, provisions of section 115 AD of the Income tax Act, 1961 are applicable for taxing the income earned by the assessee. For the assessment year under dispute, the assessee filed its return of income on 26-7-2007 declaring total income of Rs. 345,45,121,702. In the said return of income, assessee had claimed Short term Capital loss at Rs. 12,49,42,867. In the course of assessment proceedings, while examining the aforesaid claim of loss by the assessee, the assessing officer found that the assessee had issued GDRs against underlying shares of Bajaj Hindustan Ltd. to non residents on 27-1-2006. The holders of said GDRs wanted to redeem them against underlying shares and, ultimately, GDRs were cancelled on 11-4-2006 and underlying shares were released which were sold in Bombay Stock Exchange (BSE) on 11-4-2006.