Share purchase below market value is not taxable where facts show only investment and no business benefit.

Purchase of shares at below market value was examined for taxability under section 69 and as a benefit or perquisite under section 28(iv). On the facts found, the assessee had only made an investment subject to a lock-in period and did not receive any taxable business benefit from the sellers. The Court found no substantial question of law arising from that factual determination, and the addition was therefore not sustainable.

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Issues: Whether the purchase of shares at a price below market value could be brought to tax under Section 69 or treated as a benefit or perquisite under Section 28(iv) of the Income-tax Act, 1961.

Analysis: The Tribunal had found, on the facts, that the assessee merely purchased shares as an investment subject to a lock-in period and did not obtain any taxable benefit or perquisite in a business transaction with the sellers. The challenge before the Court did not disclose any substantial question of law arising from that factual finding.

Conclusion: The addition was not sustainable on the facts found, and the appeal was not admitted.

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