Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2017 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (7) TMI 612 - HC - Income TaxPenalty u/s 271 (1)(C) - purchasing the shares at higher price - Held that:- As observed by the Tribunal and the Commissioner (Appeals) that the reason has been given by the Assessee for purchasing the shares at higher price than the one reflected in the stock exchange price. The said shares were not much traded in the market and the Assessee had to purchase the bulk quantity of shares which was possible only from few targeted holders and not from the open market and such transaction of bulk purchases generally carry premium and the price of ₹ 10/per share was arrived at after negotiation with the sellers. The explanation is also accepted by the Tribunal that any attempt to purchase the shares in such bulk quantity directly from the open market could have resulted in increase in the price of shares on the stock exchange resulting into loss to the Assessee. Even the valuation report of the approved valuer was considered by the Assessee before purchase of the said shares. All other explanations has been accepted by the Commissioner (Appeals) and the Tribunal. The same are the findings of fact. - Decided against revenue
|