TaxTMI 
TaxTMI 
2012 (11) TMI 716
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....(A) is arbitrary unjust, unwarranted, mala fide and illegal. 2. For that the Ld. CIT(A)'s action in enhancing the assessment on account of alleged short term and long term capital gains of Rs. 1062388/- and Rs. 1158620/- respectively without (a) rejecting the certificate issued by Sterlite Industries (India) Ltd. and (b) Without rejecting the Appellant's contention that capital gains under the Income-tax Act, 1961 can be levied only on the amount of net consideration received in excess of the cost of the capital asset. is arbitrary, unjust, unwarranted, mala fide and illegal. 3. For that there is no provision under the Income-tax Act, 1961 to charge capital gains tax on the market value of the capital....
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....ots were transferred to the persons as per the directions of the company in lieu of the settlement. The Assessing Officer worked out the capital gain being long term capital gains in respect of 1848 and short term capital gain in respect of 1368 shares on the basis of market price of the shares and accordingly, prayed the Commissioner of Income Tax (Appeals) to enhance the assessment to Rs. 11,58,620/- as long term capital gains and Rs. 10,62,388/- as short term capital gain. Consequently, the Commissioner of Income Tax (Appeals) enhanced the assessment to the extent of the above amounts as short term capital and long term capital gains. 5.2 The ld. AR of the assessee has submitted that the assessee trust was allotted initially16910 equity....
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.... has relied upon the order of the Commissioner of Income Tax (Appeals). 7. We have considered the rival submissions and carefully perused the relevant material on record. The assessee is an employees' welfare Trust of the Employees of M/s Sterlite Industries (I) Ltd. There is no dispute that the shares were allotted by the company to the assessee initially @ Rs. 180 per share and due to bonus issue, the cost price of the shares were reduced to Rs. 90 per share. During the year under consideration, as per the directions of the company, 3209 shares were transferred to 15 different parties in two lots. The assessee received from the company a sum of Rs. 2,88,620/- @ Rs. 90 per share. There is no allegation either by the Assessing Officer in t....