Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (2) TMI 1985 - AT - Income TaxGain on sale of shares - price received by the assessee over and above the market value - allowable business income u/s 28(va) - price received by the assessee over and above the price quoted in the Stock Exchange is for non-compete fee - HELD THAT:- The assessee got the shares valued by an independent valuer. The agreement for purchase of shares with M/s Tube Investment of India clearly says that no non-compete fee would be paid by the purchaser. Moreover, when the assessee is selling a large amount of 2,82,50,291 equity shares to M/s Tube Investment of India, the purchaser gets control over the company. Moreover, ₹81/- per share was not only paid to the assessee but also to third party general public. Therefore, it cannot be said that ₹10/- per share was excessively received by the assessee over and above the market rate quoted in the Stock Exchange as non-compete fee. When the price fixed by the Stock Exchange for a single share was ₹71/- and the assessee was selling 2,82,50,291 equity shares whereby the controlling interest in the company stands transferred, this Tribunal is of the considered opinion that there cannot be any presumption that the price received by the assessee over and above the price quoted in the Stock Exchange is for non-compete fee. Therefore, the CIT(Appeals) has rightly deleted the addition made by the Assessing Officer - Decided against revenue.
|