TMI Blog2012 (5) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... family settlement is nothing but a partition and that the word ‘transfer' does not include partition or family settlement - The sale proceeds earned by the assessee out of sale of shares held in private limited companies cannot be treated as the income of the assessee and brought to capital gains tax - in favour of assessee. - IT APPEAL NO. 3048 OF 2005 - - - Dated:- 19-3-2012 - N. KUMAR AND RA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntly managed by one of the parties. Disputes arose between the parties. The dispute was referred to an arbitrator. The arbitrator suggested a settlement which the parties agreed. In terms of the settlement the assessee had to resign from Kaveri Breweries, a partnership firm and transfer has interest to Sri Neelakanta Rao for a consideration of Rs. 35,000/- being the capital balance of the firm, Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ddin Ahmed v. CGT [1976] 102 ITR 253 held that admittedly there are lot of disputes between the family members of the asssessee who are none other than the relatives of one other and in that event, the family arrangement and settlement entered into between the parties on the suggestion made by the arbitrator cannot be termed as a transfer either in respect of movable or immovable properties or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansfer as there was family disputes and such arrangement took place at the instance the arbitrator. 3. Whether, the Tribunal was correct in holding that the finding recorded by the Assessing Officer that the sale of shares held by the assessee in his individual capacity over various private limited companies can be brought to capital gains tax which came to be upheld by the Appellate Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and consequently no tax on capital gain is liability to be paid. The tribunal on a proper consideration of the entire material on record has categorically held that the transaction question is a family arrangement. There is no transfer, there is no capital gain and therefore there is no liability to pay capital gain tax. The order is in accordance with law. The substantial questions of law are ans ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
