Law: Income Tax Act, 1961

Section: 256,45

Income-tax---Reference---Capital gains---Academic questions cannot be referred---Share certificates delivered and consideration received in a particular year---Transfer of shares for purposes of S.45, Indian Income Tax Act, 1961, complete in that year---Question regarding date of transfer of shares is academic and cannot be referred---Indian Income Tax Act, 1961, Ss. 45 & 256. In the case of transfer of shares, for purposes of section 45 of the Income Tax Act, 1961, as between the transferor and the transferee, the transaction is complete when the share certificates are handed over. The mere fact that the company has not registered the transfers in its books would not justify the claim that the transfer took place only later. Howrah Trading Co. Ltd. v CIT (1959) 36 ITR 215; 29 Comp. Cas. 282 (SC), Vasudeve Ramchandra Shelat v. Pranlal Jayanand Thakar (1975) 45 Comp. Cas. 43 (SC) and CIT v. M. Ramaswamy (1985) 1511TR 122 (Mad.) fol. Held, that the assessee-company which held shares of other companies passed a resolution and the share certificates were delivered and consideration was also received during the accounting period relevant to the assessment year 1978-79. As between the transferor and the transferee, the transaction was complete. The share certificates were handed over to the broker on June 28, 1977. In such circumstances, the transfer of shares for the purpose of section 45 of the Income Tax Act, 1961, was complete in the assessment year 1978-79. The decision so arrived at by the Appellate Tribunal was based on the decisions of the Supreme Court. The question as to the date of the transfer raised was merely academic. It was not a referable question of law. CWT v. Babulal Jatia (1982) 137 ITR 540 (Cal.) and Seth R. Dalmia v CIT (1977) 110 ITR 644 (SC) ref. JUDGMENT K.S. PARIPOORNAN, J: --The petitioner is a public limited company. The respondent is the Revenue. The matter involved herein relates to the assessment year 1978-79 for which the previous year ended on June 30, 1977. During the accounting year relevant to the assessment year, the assessee had transferred certain shares of other companies held by it. The entire sale consideration was…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492