2017 (7) TMI 612

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....C. Naniwadekar for the Respondent ORDER Per Court 1] The present appeal is filed against the order of the Tribunal upholding the order of the Commissioner (Appeals) and quashing the order of the Assessing Officer imposing penalty under Section 271 (1)(C) of the Income Tax Act. 2] Mr.Pinto, the learned counsel submits that the Tribunal was not justified in relying on the judgment of the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e is supported by the valuation of the shares determined by the approved valuer on the basis of net asset value per equity share. The reason for paying higher price for the share purchased in bulk than the stock exchange price were also explained. The said shares were not widely traded in the market and the purchase of bulk quantity of shares was possible only from a few targeted holders. 4] We....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... and such transaction of bulk purchases generally carry premium and the price of Rs. 10/per share was arrived at after negotiation with the sellers. The explanation is also accepted by the Tribunal that any attempt to purchase the shares in such bulk quantity directly from the open market could have resulted in increase in the price of shares on the stock exchange resulting into loss to the Assess....