2015 (8) TMI 180

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....law the Tribunal was justified in holding that a share in the DSE as also membership of DSE were property/assets and transfer thereof was exigible to tax under the Gift-tax Act, 1958? (2) Whether on the facts and circumstances of the case and in law the Tribunal was justified in opining that composite value of share and ticket was to be adopted?" 3. The Assessee filed its income tax return declaring a gift of Rs. 2,85,504. This pertained to the gift of one share of the Delhi Stock Exchange Ltd. ("DSE") by the Assessee to his son, Mr. Vijay Kumar Syal, on 9th March 1992. The Assessing Officer ("AO") was of the view that the donee, as a result of the said gift, acquired the right to enter the trading ring on the floor of the stock excha....

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....person other than a member of the stock exchange or a candidate for membership who has been duly elected as eligible for membership under the provisions of Article 25 and the Board may refuse to register any transfer or shares(s) to an existing member or may impose such condition in respect of any such last mentioned transfer as they may deem fit. Under Article 21 of the AoA any person who becomes entitled to a share in consequence of the death of a share holder of the company shall have the right to be registered as a share-holder in respect of the said share or, instead of being registered himself, to make such transfer of the share as the deceased person himself could have done, provided he is otherwise qualified to be so registered unde....

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.... the limited extend as provided in the rules on fulfilment of conditions provided therein. The nomination wherever provided for is also not automatic. It is hedged by rules." The Court was categorical that "the membership right in question was not the property of the assessee and therefore, it could not be attached under Section 281B of the Income Tax Act." 8. The above legal position has been reiterated in Techno Shares and Stocks Ltd. v. ACIT (supra) and followed by the Mumbai Bench of the ITAT in DCIT v. Ashwin C. Shah (supra). 9. In view of the above settled legal position, and in light of its analysis of the relevant provisions of the AoA of the DSE, the Court is of the view that the first question requires to be answered in favo....