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2007 (10) TMI 293 - HC - Income TaxCapital Receipt versus Revenue Receipt - During the relevant year, the assessee claims to have sold 5,40,159 shares of M/s. ICDS Limited at the rate of Rs. 220 per share for consideration of Rs. 11,88,34,980 and taking into account the cost of shares, the surplus realised by the assessee was to the extent of Rs. 3,62,25,964. The assessee-company claiming the aforesaid surplus fund as a capital receipt representing the difference on account of a family dispute settlement in accordance with the arbitration award – held that - by virtue of the arbitration award if shares of the private limited company are transferred to others for consideration, we are of the opinion that the respondent-assessee being a legal entity is liable to pay the capital gains tax - Tribunal did not consider a question that was raised by the assessee, namely, that it was not liable to pay the capital gains tax since no consideration was passed on such transfer and that there was no proper determination by the Assessing Officer on the cost of acquisition of the shares – matter remanded.
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