ACIT v Roda Rusi Karanjia,
Long-term capital gain — Sale of shares —
Valuation of market price of share — Schedule III of Wealth tax Act
applied — Permissibility — Assessee, individual, sold shares and amount
received was offered to tax under long-term capital gain — Cost of
acquisition was shown as nil — AO noticed that company from
which
assessee purchased shares and company to which assessee sold shares were
closely related with assessee — AO determined that calculation of
actual market value of shares was to be done according to Pt III of Sch
III of Wealth tax Act — AO thus invoked provisions of s 56(2)(vi) to
come to conclusion that amount received over and above ₨ 444.16 per
share was income received from other sources and brought to tax — CIT(A)
allowed assessee's appeal — Held, it was rightly observed by CIT(A)
that share price fixed was paid not only to assessee but also to other
shareholders of company and hence assessee alone could not be segregated
on ground that she, being relative, there would have been deemed gift
in form of payment of excess price per share purchased from her — There
was sufficient consideration for transfer of shares — Provisions of
Wealth Tax Act had no application in case as those provisions were
omitted from Statute Book and they were applicable only for valuation
under Wealth Tax Act and not for income tax valuation purposes —
Secondly, s 56(2)(vi) might get attracted in case where any sum is
received by assessee without consideration — Therefore, AO directed to
treat entire capital gains claimed by assessee under head long-term
capital gains only.