Assessee, a UAE-based company, engaged in investment activities, filed its return of income declaring Nil income and claimed long-term capital loss of Rs. 3. 63 crores arising on sale of shares of an Indian private company after applying first proviso to section 48. Revenue held that since assessee was a foreign company and had sold unlisted shares of an Indian company, provisions of section 112(1)(c)(iii) were applicable and accordingly computed long-term capital gains without giving effect to first and second provisos to section 48, which was confirmed by DRP Held that section 112(1)(c)(iii) is a special provision for computation of capital gains, in case of a non-resident, arising from transfer of unlisted shares and securities whereas section 48 is a general provision dealing with mode of computation of capital gains in all cases of transfer of capital assets. Section 112(1)(c)(iii) does not provide for re-computation of capital gains for levying tax rate of 10 per cent, therefore, where ingredients of section 112(1)(c)(iii) are satisfied i. e. (a) sale of unlisted shares of Indian company (b) by a non-resident/foreign company and (c) giving rise to long-term capital gains, then capital gains is required to be computed as per manner provided under section 112(1)(c)(iii). Whether Accordingly the revenue’s action of computing capital gains under section 112(1)(c)(iii) is justified. (AY. 2018-19)