Dismissing the appeal of the revenue the Court held that the additional amount received by the assessee was part of the offer from the sale of shares made by it. The additional sum was part of the sale price and retained the same character as the original price of the share. The additional receipt of the assessee relatable to this component was a capital receipt.
CIT v. Morgan Stanley Mauritius Co. Ltd. (2019) 413 ITR 332 / 308 CTR 139 / 176 DTR 413(Bom.)(HC)
S. 4 : Charge of income-tax–Capital or revenue–Sale of shares upon open offer–Additional consideration paid in terms of open offer due to delay in making offer and dispatch of letter offer- Capital receipt.