Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (10) TMI 184 - HC - Income TaxAccrual of income from demutualisation of the exchange (BSE) - each holder of the card being given 10,000 shares of BSEL in lieu of the membership card. - AO was of the view that the assessee was entitled to claim the cost of acquisition of shares being the original cost of acquisition of membership card as against the written down value of the card at had it been that claim for depreciation was allowed – Held that:- AO added the benefit to the total income of the assessee u/s 41(1) so also alternatively u/s 28(1)(iv) on protective basis - The AO himself is aware of the fact that it may be argued that the benefit will arise in the year of transfer and not in the current year - for the current year it is only demutualisation which has taken place and on that basis alone it is said that the assessee derives benefit - Nothing has been pointed out other than this fact to indicate as to how section 28 (1)(iv) is stated to be attracted. There is nothing on record save and except the fact that the exchange is now a limited company and a corporate entity - It is that corporate entity of which the assessee has become share holder/member - It is that corporate entity which is successor in title of BSE - The members/shareholders of the BSE have thus been allowed to continue with new corporate entity and with the same benefits - 10,000 shares have been allotted and without anything more would not be enough to undertake the exercise as is now stated to be undertaken - The depreciation that was claimed was disallowed and computed as benefit and which could be derived because of demutualization – Decided against revenue.
|