TMI Blog2002 (9) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... to the share deposit account of the company that by itself will not amount to allotment of shares for shares can be issued only after the company passes a resolution deciding to allot shares - view of the Tribunal is endorsed that the appellant got the shares only on May 31, 1988, i.e., the date at which the share certificates were issued to the appellant - In this case the share certificates were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nar Steels Ltd. The firm had made deposit with the company for the purpose of agency and later when the company, Pennar Steels Ltd., became a public limited company the deposit standing to the credit of the firm in the accounts of the company was transferred to the credit of the partners of the firm towards share deposit account on March 31, 1988. The assessee was issued share certificates with di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... late Tribunal set aside the order of the first appellate authority and restored the order of the assessing authority. Sri P. Balakrishnan, learned counsel for the assessee, submitted that since the amounts standing to the credit of the firm in the accounts of the company was transferred to the credit of the partners of the firm towards share deposit accounts on March 31, 1988, evidenced by a cer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... justified in taking the view that the capital gains assessment has to be made treating the asset as a short-term capital asset. We have perused the order of the Income-tax Appellate Tribunal as well as the order of the assessing authority. We find that the Tribunal has rightly held that the assessee obtained a legal title to the shares only when the share certificate was issued by the company sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he subject matter of the capital gains tax only on May 31, 1988, i.e., the date at which the share certificates were issued to the appellant. In this case the share certificates were issued to the assessee on May 31, 1988. In that view of the matter, according to us, the Tribunal was perfectly justified in holding that the capital gains have to be assessed on the transfer of the shares by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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