It was held that Explanation 7 to section 9(1)(i) has retrospective effect, as Explanation 6 & 7 were inserted in furtherance of object of inserting explanation 5 and Explanation 5 was given the retrospective effect. As per Explanation 7 transactions that involves sale of shares of foreign company, which held investment in India would not be taxable, because it has a retrospective effect which includes the assessment year in consideration. (AY. 2015-16)