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2007 (3) TMI 661 - AT - Income TaxSale of shares - Long-term capital gains - Whether the date of transfer of shares in this case should be reckoned as March 17, 1998, i.e., the date of execution of the agreement for sale of shares on April 23, 1998, i.e., when delivery of share certificates along with transfer deeds were handed over to the purchaser - HELD THAT:- We find that the entire agreement executed on March 17, 1998, among the parties was acted upon. It was conceded before us by learned counsel that the approval of the Government authorities had been received in the accounting period relevant to the assessment year under consideration. The entire shares were delivered along with transfer deeds on April 23, 1998. Thus, the present case stands on stronger footings in favour of the Revenue and against the assessee because in the case before the hon’ble Kerala High Court, the entire shares, subject-matter of transfer in the agreement, could not be transferred because of non-receipt of Government approval in respect of 40,000 shares. This is not the case here. Therefore, we are of the considered opinion that this was not a conditional sale as was also understood by the parties at the time when resultant capital gains on sale of shares was included in the original return filed by the assessee. Therefore, the case of the assessee is fully covered by the aforesaid circular of the Board as the date of transfer for the purpose of section 45 would be March 17, 1998 and not April 23, 1998. Thus, we are of the considered opinion that the authorities below were justified in taking the date of transfer of shares as March 17, 1998, falling in the accounting period relating to the assessment year under consideration. Accordingly, we confirm the order of the CIT (A) and reject the various grounds of appeal of the assessee. In the result, the appeal of the assessee is dismissed.
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