TaxTMI 
TaxTMI 
2014 (3) TMI 22
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....nder section 28(iv) by A.O. 2. Briefly stated facts are that the assessee is the founder Director of Yodeva Plastics Pvt. Ltd. and held substantial shares of the said company along with his family members. During the previous year under consideration, the assessee sold 44,297 shares of Yodeva Plastics Pvt. Ltd. to Alpla India Pvt. Ltd., at a rate of Rs.960/- per share. The total sale consideration received by the assessee was Rs.4,25,25,120/-. After deducting the cost of acquisition of the shares, assessee admitted a capital gain of Rs.3,91,06,970/- and claimed exemption under section 54F of the I.T. Act. The assessee also admitted the income from remuneration and income from other sources besides admitting short term capital gain. There....
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....only on account of surrendering of shareholding but also on account of surrender of the management rights over the company. Therefore, A.O. was of the view that the sale consideration of sale of shares has to be determined considering the market value of the shares as on the date of sale i.e., Rs.614/- per share as valued by CAs and that the balance of sale consideration was assessable as income from business or profession as the same was attributable to parting of the management rights. The A.O. accordingly, determined the capital at Rs.2,37,80,208/- and allowed exemption u/s. 54F only to the said extent. He determined the profit assessable under section 28(iv) at Rs.1,53,26,762/-. 3. It was submitted before the learned CIT(A) that the ....
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....posing the shares and the foreign company showed interest in acquiring the total rights in the company. Therefore, the assessee contended that he could demand a higher price than the market rate. c) The assessee relied on the fact that during the financial year 2006-07 the shares could be sold at Rs.160/- per share and the market value during the financial year 2007-08, was fixed at Rs.614/- per share an increase of more than 350%. The learned A.R. submits that the trend shows an upward movement in the value of the shares of Yodeva Plastics Pvt. Ltd. and therefore, he was in a position to demand a higher price. d) The assessee also relied on the proceedings before the FIPB wherein the foreign investor was permitted to acquire the equi....
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....y preceding year at Rs.160/- per share, which clearly shows that the value of the share is substantially on the increase. The share which was sold at Rs.160/- per share during the financial year 2006-07, is valued at Rs.614/- per share during the financial year 2007-08 which shows a tendency of increase in the value of shares. Therefore, the appellant quoted a rate of Rs.1500/- per share keeping in view the possibility of further increase in the value of the shares. The foreign company after negotiations with the appellant decided to purchase the shares at the rate of Rs.960/- per share. The appellant brought on record evidence to show that the foreign company intended to acquire the total share holdings and the appellant was in a position ....