ORIENT GREEN POWER PTE. LTD. 1, ROBINSON ROAD 17-00 AIA TOWERS, SINGAPORE 048542 Vs. MR. K.RULES VASUDEVAN, ADDL. DIT(IT) MR. RULESS. RAWAL, CIT(DR), NEW DELHI

JUDGEMENT

(1.) The applicant is a company incorporated in Singapore. It holds 99.61% of the share capital in Orient Green Power Ltd., a company incorporated under the Companies Act, 1956 which is hereinafter referred to as OGPL India. The applicant also holds 49.75% of the share capital in Bharath Wind Farm Limited, (BWFL India, hereafter) a company incorporated under the Companies Act, 1956. The balance 56.25% shares in BWFL India is held by OGPL India. According to the applicant, it has transferred its 49.75% shares held in BWFL India, to OGPL India without consideration. The transaction is evidenced by a memorandum of gift dated 30.01.2010. Since the transfer was effected before the coming into force of section 56(2) (viia) of the Income -tax Act, the transaction was not taxable under the Act in terms of section 45 of the Act read with section 48 of the Act, since the transfer was one without consideration.

(2.) ON the facts and in the circumstances of the case, whether the transfer of Bharath Wind Farm Limited ('BWFL India') shares by Orient Green Power Pte Ltd ('OGPP Singapore') to Orient Green Power Company Limited ('OGPL India') without consideration, in order to consolidate its Indian operations, would be subject to tax under the Act in India in the hands of OGPP Singapore?

(3.) ON the facts and in the circumstances of the case, whether the transfer pricing provisions contained in section 92 to 92F of the Act would be applicable to transfer of shares by OGPP Singapore to OGPL India for no consideration/without consideration?