Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (11) TMI 1638 - AT - Income TaxWorking out capital gain on sale of shares of BSE - whether WDV of BSE Card in the books of accounts of assessee or original cost of acquisition of BSE Card is to be considered towards cost of shares allotted to the members? - Held that:- There is no dispute to the fact that the assessee availed depreciation on the BSE card till BSE was corporatized and accordingly WDV of the BSE card is the cost of membership in the books of accounts of the assessee has to be treated as cost of acquisition towards 10000 shares; were allotted to assessee at the rate of ₹ 1 per share. Hence, we are of the considered view that LTCG in respect of shares has to be considered after assigning the WDV of BSE card to the cost of 10000 shares allotted to the assessee. It is ascertained that the assessee in the assessment year under consideration has sold 9123 shares. Therefore, proportionate cost of WDV of BSE card has to be assigned to the said shares while computing the LTCG. We are of the considered view that the AO has rightly computed LTCG by considering the cost of shares taking into account the WDV of the stock exchange card.
|