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2015 (8) TMI 180 - HC - Income TaxHolding share in the DSE as also membership of DSE - whether were property/assets and transfer thereof was exigible to tax under the Gift-tax Act, 1958? - Whether the Tribunal was justified in opining that composite value of share and ticket was to be adopted? - Held that:- In view of the settled legal position as decided in Stock Exchange, Ahmedabad v. ACIT (2001 (3) TMI 2 - SUPREME Court), Techno Shares and Stocks Limited v. ACIT (2010 (9) TMI 6 - SUPREME COURT OF INDIA ), Vinay Bubna v. Stock Exchange, Mumbai AIR [1999 (7) TMI 115 - SUPREME COURT OF INDIA], DCIT v. Ashwin C. Shah (2001 (12) TMI 195 - ITAT BOMBAY-WT) and in light of its analysis of the relevant provisions of the AoA of the DSE, the Court is of the view that the first question requires to be answered in favour of the Assessee. It is accordingly held that the ITAT was not justified in holding that membership of the DSE was an asset of the Assessee and transfer thereof was exigible to gift tax under the taxation under the Gift Tax Act, 1958. Membership of the stock exchange is in the nature of personal permission and is not a tangible asset. The second question is answered in the negative. It is accordingly held that the ITAT was not justified in adopting the composite value of the share as well as the ticket for the purpose of gift tax. This Court is not called upon to examine the correctness valuation of the shares transferred by the assessee in favour of his son for the purposes of gift tax.
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