Mohit S. Shah, C.J.

1. At the request of the learned Counsel for both the sides the petition was taken up for final disposal.

2. The Petitioner, Vodafone India Services Pvt. Ltd., is a wholly owned subsidiary of a non-resident company,Vodafone Tele-Services (India) Holdings Limited (the holding company). The Petitioner required funds for its telecommunication services project in India from its holding company during the financial year 2008-09 i.e. Assessment Year (AY) 2009-10. On 21 August 2008, the Petitioner issued 2,89,224 equity shares of the face value of Rs. 10/- each on a premium of Rs. 8,509/- per share to its holding company. This resulted in the Petitioner receiving a total consideration of Rs. 246.38 crores from its holding company on issue of shares between August and November 2008. The fair market value of the issue of equity shares at Rs. 8,519/- per share was determined by the Petitioner in accordance with the methodology prescribed by the Government of India under the Capital Issues (Control) Act, 1947.

However, according to the Assessing Officer (AO) and