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of <h1>Tax Court Rejects Section 69 Addition on Shares Below Market Price</h1> <h3>Commissioner of Income-tax-7 Mumbai Versus M/s Rupee Finance & Management Pvt Ltd. Mumbai</h3> Commissioner of Income-tax-7 Mumbai Versus M/s Rupee Finance & Management Pvt Ltd. Mumbai - TMI The appeal raised two questions: whether 'no addition is sustainable u/s 69 on the purchase of shares at a price much lesser than the market price,' and whether a discounted acquisition of shares-pledged at market price to obtain a loan of Rs. 49.75 crores-constituted a 'benefit' or 'perquisite' u/s 28(iv). The Tribunal's order of 5.2.2008 was reviewed and upheld: it found that 'mere purchase of shares, as an investment, with the lock in period of holding, for a consideration which is less than the market value, cannot be brought to tax, as a 'benefit' or 'perquisite' under Section 28 (iv) of the Act.' The Tribunal further found that the assessee 'has not secured any benefit or perquisite in consideration of a business transaction undertaken with the sellers of the shares.' On these factual findings, the court held there is no substantial question of law and dismissed the appeal.
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