TMI Blog2014 (10) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... benefit will arise in the year of transfer and not in the current year - for the current year it is only demutualisation which has taken place and on that basis alone it is said that the assessee derives benefit - Nothing has been pointed out other than this fact to indicate as to how section 28 (1)(iv) is stated to be attracted. There is nothing on record save and except the fact that the exchange is now a limited company and a corporate entity - It is that corporate entity of which the assessee has become share holder/member - It is that corporate entity which is successor in title of BSE - The members/shareholders of the BSE have thus been allowed to continue with new corporate entity and with the same benefits - 10,000 shares have b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee claimed depreciation on the value of card in assessment years 2004-05 and 2005-06 aggregating to ₹ 42,66,063/- which was disallowed by the Assessing officer. This matter is pending in the appeal. 4. For the assessment year under consideration which is 2006-07 this was not a position yet according to Mr.Malhotra what transpired is that BSE was demutualised and its operation were taken over by Bombay Stock Exchange Ltd. (for short BSEL ) and with effect from 19th August, 2005 each holder of the card was given 10,000 shares of BSEL in lieu of the membership card as provided in section 55(2)(ab) and the cost of acquisition of shares so allotted was to be taken as equivalent to the original cost of acquisition of the card whereas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ttention is invited to the assessment officer's order and particularly the finding at page 15 of the paperbook paragraph 3.17. Mr.Jasani submits that there has been absolutely no benefit and only if the card had been transferred and the assessee claims that deduction should be on the original price of ₹ 97,51,000/- then, whether section 28(1)(iv) applies and is attracted or not, can be considered. Presently, in a academic exercise neither any issue of law is raised nor appeal could have been filed by the Revenue. 7. We have heard both counsel and with their assistance we have perused the paperbook including the order. Pertinently, the question as referred above and stated to be of law is raised for the assessment year 2006-07. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee has become share holder/member. It is that corporate entity which is successor in title of BSE. The members/share holders of the BSE have thus been allowed to continue with new corporate entity and with the same benefits. That 10,000 shares have been allotted and without anything more would not be enough to undertake the exercise as is now stated to be undertaken. 10. It is in these circumstances and factual background that we find that the tribunal's order and particularly discussion in paragraph 7 thereof does not raise any substantial question of law. The tribunal may have referred to legal provisions and the judgment of Full Bench of the Gujarat High Court in case of the Commissioner of Income Tax vs. Bharat Iron and Steel Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X
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