2014 (8) TMI 161

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....CIT, DR ORDER Per R. S. Syal, AM: This appeal by the Revenue is directed against the order passed by the CIT (A) on 24.01.2013 in relation to the assessment year 2006-07. 2. The only grievance raised through two grounds is against the holding of profit on sale of shares as long-term capital gain instead of short-term capital gain as held by the AO. 3. Briefly stated, the facts of th....

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.... considering the cost for which previous owner acquired such shares. The reason given by the AO for not accepting the assessee's contention of applicability of section 49(1)(ii) was that the shares were received as donation and, hence, could not constitute 'gift' within the meaning of section 49(1)(ii) of the Act. He, therefore, treated gain from the transfer of shares amounting to Rs. 1.13 crore ....

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....available in the paper book, the Tribunal also dealt with sections 11(1)(d), 12(1), 13(1)(d)(iii) along with proviso (iia) to section 13(1)(d). Now, the short question before us is as to whether the shares were received by the assessee as gift. If the answer to this question comes in affirmative, then, the provision of section 49(1)(ii) would be attracted and the cost of acquisition of such shares....

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....the assessee under a gift or will, the cost of acquisition of the asset shall be deemed to be cost for which the previous owner of the property acquired it as increased by cost of improvement, etc., incurred by the previous owner or the assessee, as the case may be. The shares of Nicholas Piramal India Ltd. were acquired by the donor in 1997 which were transferred to the assessee by means of donat....