1. The applicant is a company incorporated in Singapore. It holds 99.61% of the share capital in Orient Green Power Ltd., a company incorporated under the Companies Act, 1956 which is hereinafter referred to as OGPL India. The applicant also holds 49.75% of the share capital in Bharath Wind Farm Limited, (BWFL India, hereafter) a company incorporated under the Companies Act, 1956. The balance 56.25% shares in BWFL India is held by OGPL India. According to the applicant, it has transferred its 49.75% shares held in BWFL India, to OGPL India without consideration. The transaction is evidenced by a memorandum of gift dated 30.01.2010. Since the transfer was effected before the coming into force of section 56(2) (viia) of the Income-tax Act, the transaction was not taxable under the Act in terms of section 45 of the Act read with section 48 of the Act, since the transfer was one without consideration. The transaction which was a gift, was also exempted from the operation of section 45 of the Act, by virtue of section 47(iii) of the Act. The applicant was approaching this Authority for a Ruling on the relevant questions raised in the application.

2. This Authority allowed the application