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2015 (5) TMI 922 - AT - Income TaxReceipt from demutualization of stock exchange - whether receipt did not constitute long term capital gain? - issue of notice U/S 143(2) beyond the period of 12 months - Held that:- CIT(A) has dismissed this ground of appeal holding that the notice was issued within the prescribed period of time. He has not mentioned about service of the said notice, therefore, we deem it appropriate to set aside this ground or appeal to the office of A.O. who on the basis of record will find out as to whether the service of notice u/s 143(2) was within the prescribed period of time and accordingly will decide this legal issue as per law. Taxability of receipt on account of demutualization DSE scheme 2005 - Held that:- CIT(A) has dismissed this ground of appeal relying upon the earlier order of the tribunal in the case of assessee itself for Assessment Year 1997-98 [2010 (5) TMI 785 - ITAT DELHI] wherein find that during that year, the assessee had received an amount of ₹ 25 lacs on account of sale of membership card and, therefore, the Tribunal had held that membership card to be capital asset and therefore had decided the issue holding that the assessee was liable to pay capital gain tax. However, in the present case, the assessee had not sold the membership card but had received the amount on account of demutualization of stock exchange and, therefore the facts of the present case are distinguishable from the facts of the case for the Assessment Year 1997-982010 . CIT(A) has also held that the judgement of Stock Exchange Ahmedabad Vs ACIT [2001 (3) TMI 2 - SUPREME Court] apply in the cases where the membership had seized and was surrendered with the stock exchange authorities. We have already held that facts of the present case are distinguishable from the facts of the case in 1997-98. Therefore in view of above, we deem it appropriate to set aside this issue also to the office of A.O. should also enquire from Delhi Stock Exchange or from other members of stock exchange who also must have received similar amounts regarding taxability of such amounts in their cases. The A.O. should also examine the claim of assessee that Delhi Stock Exchange was a charitable organization. Needless - Decided in favour of assesse for statistical purposes.
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