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TMI Blog1998 (7) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... on the facts and circumstances of the case, the Tribunal was right in treating the difference between the value of shares in Food Specialities as per the Delhi Stock Exchange rate and the consideration received by the assessee as deemed gift under section 4(1)(a) of the Gift-tax Act, 1958 ? "Whether, the Tribunal was right in holding that capital gains accepted by the Income-tax Officer for the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 71,000 to the vendees as the price for the very same share quoted at the Delhi Stock Exchange at the time of transfer was Rs. 35.50 per share. That view of the Assessing Officer had been upheld by the Commissioner and the Tribunal. It was contended by learned counsel for the assessee that the Tribunal has erred in holding that there was a gift, by adopting a rate at which the shares were trade ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n and market value and deems the market value to be the adequate consideration for the purpose of the section. Market value has to be determined with reference to the price that a willing purchaser dealing at arm's length will be prepared to pay for the asset. In respect of shares the "market" is the stock exchange. The rates quoted at the stock exchange, in a case where shares are traded in more ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the higher rate had been quoted for it in any other exchange in the country. It would result in absurd consequences. Shares are traded in large volumes and the number of investors and speculators trading in any exchange are substantial in number. The Gift-tax Act was not intended to treat all of them as donors even when they had sold the shares on the exchange at the rate quoted at the exchange. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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