Benefits of lower tax rates of 10 per cent as per proviso to section 112(1) is not available where shares of listed company are sold in off-market mode

Benefits of lower tax rates of 10 per cent as per proviso to section 112(1) is not available where shares of listed company are sold in off-market mode

·         Assessees and assets covered by the first proviso to section 48 are not entitled to benefit of proviso occurring after clause (d) of section 112(1)  

·         As section 48 must be read with section 112 and if tax on longterm capital gains provisions cannot be given effect to for any reason, then the provision has no application under the Act

·         The applicant is not eligible to avail benefit of lower rate of tax of 10 per cent on capital gains accruing to it on sale of shares of an Indian company to a foreign company in off-market mode

AUTHORITY FOR ADVANCE RULINGS (INCOME-TAX) NEW DELHI -- Cairn U.K. Holdings Ltd., In re

AAR NO. 950 OF 2010