Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2006 (6) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2006 (6) TMI 78 - HC - Income TaxExcess amount received from the sale of shares - liable to capital gains tax or should be treated as capital receipt - "(1) Whether the assessee is a dealer in shares or a mere investor in the shares and whether the excess amount of Rs. 2,70,000 received from the sale shares is liable to capital gains tax or should be treated as capital receipt? (2) Whether the Tribunal was not justified in holding that the sum of Rs. 2,70,000 received by the assessee-company under deed of settlement dated March 28, 1988, was transferred towards the sale of shares, and not for allowing other group of shareholders to take over the management of the said company?" – shares were purchased on May 7, 1986, April 9, 1986 and October 3, 1986, and were sold during the assessment year 1988-89, and as such, it could not be said that this was an investment in shares independent of the trading activity of the company. - what was received by the assessee by selling the shares, was the consideration for the shares and therefore was assessable to tax. - we answer question No. 1 in favour of the Revenue - question No. 2 is a question of fact and not a question of law and therefore we decline to answer the said question.
|