Instruction No.2/2015

F No.500/15/2014/APA-I
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
Foreign Tax & Tax Reserch- l Division
APA-l Section

New Delhi, Dated the 29 ^th January, 2015

To
All Principal CCsIT/DsGlT and CCsIT/DsGlT

Madam/Sir

Subject Acceptance of the Order of the Hon'ble High Court of Bombay in the case of Vodafone India Services Pvt. Ltd.-reg.

In reference to the above cited subject, I am directed to draw your attention to the decision of the High Court of Bombay in the case of Vodafone lndi a Services Pvt. Ltd. for AY 2009-10(WP No.871/2014), wherein the Court has held, inter-alia, that the premium on share issue was on account of o capital account transaction  and does not give rise to income and, hence, not liable to transfer pricing adjustment.

2. lt is hereby informed that the Board has accepted the decision of the High Court of Bombay in the above mentioned Writ Petition. In view of the acceptance of the above judgment, it is directed that the ratio decidendi of the judgment must be adhered to by the field officers in all cases where this issue is involved. This may also be brought to the notice of the ITAT, DRPs, and CslT(Appeals).

3. This issues with the approval of Chairperson CBDT.

 (Anchal Khandelwal)
Under Secretary to the Govt. of India