I-T finds Shell India undervaluing shares by Rs 15,201 cr

Palanimanickam in a written reply to the Rajya Sabha.

These figures were based on the assessment made by Transfer Pricing Officers TPOs in the two cases separately,said the Minister,adding 8220;the assessment orders are yet to be passed in these cases8221;.

He said: 8220;In the case of Shell India Markets Private Limited and Vodafone India Services Private Limited,Transfer Pricing Officers TPOs have held that these companies have transferred shares to their respective associated enterprises AE at price below fair market value of shares.8221;

The assessment,he added,was based on the arm8217;s length pricing norms under the I-T Act for valuing such transactions.

Shell India,he said,8221;as against the rate of Rs 10 per share adopted by the assessee on 87.64 crore number of shares transferred to its AE based in Netherlands,the TPO worked outthat arm8217;s length rate of Rs 183.44 per share,at market price.leading to adjustment of Rs 15,201 crore on account of undervaluation of shares.8221;

In case of Vodafone India,he said,as against the rate of Rs 8,509 per share adopted by the company on 2.89 lakh shares transferred to its AE,the TPO worked out the arm8217;s length price at Rs 53,775 per share,leading to adjustment of Rs 1,308.91 crore on account of undervaluation of shares.

The cases relates to assessment year 2009-10.

The Minister replied in negative when asked whether the I-T department was harassing the companies in transfer pricing cases.