TMI Blog2019 (1) TMI 603X X X X Extracts X X X X X X X X Extracts X X X X ..... s noted the relevant facts and analyzed such facts in proper perspective. To reiterate, the shares in question were not purchased by the Trust at all. They were settled by the settler of the Trust. The Settler himself had not purchased majority of these shares but had received by way of Employee Stock Option Plan. The shares so received as well as small numbers of shares purchased by the settler were held by himself for over two years before settling them in the Trust. No question of law arises. - decided against revenue - Income Tax Appeal No. 692 of 2016 - - - Dated:- 18-12-2018 - Akil Kureshi And M.S. Sanklecha, JJ. For the Appellant : Mr. A. R. Malhotra with Mr. N. A. Kazi ORDER P.C: Revenue is in Appeal against t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issed the Respondent's Appeal. Tribunal noted that the settler of the Trust had transferred 6 lacs equity shares of one M/s. Tech Mahindra to the Trust. 96% of these shares were alloted to the settler by way of Employees Stock Option Plan. Remaining 4% or 26,600 shares were purchased by him. It was noticed that the bulk of shares i.e. 96% were alloted by way of Employee Stock Option Plan on 26th March, 2007 and such shares were settled in the Trust only on 24th March, 2010 i.e. after holding shares for nearly three years. Even the balance shares i.e. 26,600 were acquired on 24th October, 2008 and were held by the settler till 24th March, 2010. 4 The Tribunal thus noted that, majority of the shares were not purchased by the settler fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rities buttresses the decision of sale of the shares immediately on constitution of the Trust, to be a prudent decision. Too, it is also on record that soon after the sale of the Tech Mahindra shares, the price thereof dipped substantially. All this is an indication to the fact that the activity was not a business activity, nor an adventure in the nature of trade. It has also been taken note of, correctly, by the ld. CIT(A) and not refuted by the Department, that the Trust is expressly prohibited from undertaking any business activity. Moreover, the avowed intention of the Trust as discussed herein above, has never been disproved and it is only that the alleged intention of carrying on business has been superimposed thereon. This has rightl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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