TMI Blog2020 (10) TMI 519X X X X Extracts X X X X X X X X Extracts X X X X ..... made payment as required under Clause 29 of the Share Purchase Agreement, the same cannot be termed as expenditure in connection with transfer of shares - whether the expenditure is incurred wholly and exclusively in connection with transfer of an asset is a question of fact, which depends in the facts and circumstances of the case. We agree with the findings recorded by the Tribunal and hold that from careful scrutiny of the order passed by the Tribunal, it is evident that in fact, first substantial question of law does not arise for consideration in this appeal. Assessee was unable to point out that three share holders who were parties to the same transaction had claimed the similar expenditure in their returns as was claimed by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nds of the other three shareholders who were parties to the same transaction. 2. Facts leading to filing of the appeal briefly stated are that assessee is an individual, who held 1,35,000 equity shares in a company viz., Trident Power Craft Pvt. Ltd. All the shareholders of the Trident including the assessee sold their shares to a company viz., EMR Mauritius Ltd. for a consideration of ₹ 600 Crores. The consideration was received by the assessee for sale of his share in Trident, which was to the extent of ₹ 27 Crores. The assessee filed the return of income for Assessment Year 2009-10 and declared long term capital gain on sale of shares of ₹ 26,07,28,826/-. The sale of shares of Trident by all the shareholders to EMR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In the aforesaid factual background, this appeal has been filed. 3. Learned counsel for the assessee submitted that the Tribunal o ought to have appreciated that Section 48(i) of the Act does not make any distinction between voluntary or involuntary expenditure and the expenditure was incurred by the assessee to the fund for welfare of the employees and ex employees of the seller company was incidental and directly attributable to the transaction of transfer of shares and therefore, the same should have been treated as expenditure incurred wholly and exclusively in connection with such transfer within the meaning of Section 48(i) of the Act. It is further submitted that the Tribunal invoked the additional evidence adduced by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement, reads as under: Payment to Employees: Within 60 days following the closing date, the sellers, as condition to this agreement, convenant and agree that they shall pay a sum of ₹ 3,45,00,000/- (Thirty Four Million five Hundred Thousand) to a Trust set up by the sellers for the benefit of the employees (including selective exemployees) of the company. 6. The Tribunal after taking note of Clause 29 in the agreement in paragraph 13 of its order has recorded a finding that even if the assessee has made payment as required under Clause 29 of the Share Purchase Agreement, the same cannot be termed as expenditure in connection with transfer of shares. It has further been held whether the expenditure is incurred wholly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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