TMI Blog2013 (11) TMI 1638X X X X Extracts X X X X X X X X Extracts X X X X ..... G in respect of shares has to be considered after assigning the WDV of BSE card to the cost of 10000 shares allotted to the assessee. It is ascertained that the assessee in the assessment year under consideration has sold 9123 shares. Therefore, proportionate cost of WDV of BSE card has to be assigned to the said shares while computing the LTCG. We are of the considered view that the AO has rightly computed LTCG by considering the cost of shares taking into account the WDV of the stock exchange card. - I.T.A. No.2314/Mum/2012 - - - Dated:- 22-11-2013 - S/SHRI B.R.MITTAL,(JM) AND SANJAY ARORA (AM) Appellant by Shri Ashim Kumar Modi Respondent by Shri Prakash Muni ORDER Per B.R.Mittal, JM: The department has f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d allowed indexation from the assessment year 2005-06 in computing the LTCG on 9123 shares sold by assessee of BSE Ltd in the assessment year under consideration. AO calculated the LTCG at ₹ 3,37,18,432/-, the details of which are given at page 5 of the assessment order and added to the total income of the assessee. Being aggrieved, the assessee filed appeal before the First Appellate Authority. 4. Ld. CIT(A) accepted the contentions of assessee to take original cost of acquisition of BSE card as cost of acquisition of BSE equity shares and referred the provisions of section 55(2)(ab) of the Income Tax act, 1961 (the Act). Hence, department is in appeal before the Tribunal. 5. During the course of hearing, ld. DR relied on the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lieu of the said membership card 10000 shares as well as rights to trade and clearing in the stock exchange. That the acquisition of cost of trading or clearing rights of the Exchanges has been considered to be nil as per proviso to section 55(2)(ab) of the Act. The entire cost of membership card as stands in the books of account of the assessee becomes cost of acquisition of 10000 shares. Now, the question arises as to whether WDV of BSE Card in the books of accounts of assessee or original cost of acquisition of BSE Card is to be considered towards cost of shares allotted to the members. There is no dispute to the fact that the assessee availed depreciation on the BSE card till BSE was corporatized and accordingly WDV of the BSE card is t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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