2008 (4) TMI 241

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....respondent. JUDGMENT The judgment of the court was delivered by C. N. Ramachandran Nair, J. - The connected appeals filed by the appellant arise from order of the Tribunal upholding levy of capital gains on land acquired from the appellant by the Government during the previous years relevant for the assessment years 1990-91 and 1991-92. The land acquired originally belonged to Basel Mi....

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....der the head "capital gains" for the reason that it had not spent any amount towards cost of acquisition. Even though the factual position was not controverted, the officer assessed capital gains on the compensation amount which is upheld by the first appellate authority and the Tribunal, against which these appeals are filed. 2. Sri. P. Balachandran, Senior counsel appearing for the appellant ....

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....pital gains by adopting the value of the land as on 1.1.1974. We do not think we should answer the question on the facts based on which decision was rendered by all the authorities including the Tribunal because we are of the view that the assumption by all the authorities that there was no consideration in the acquisition of property by the assessee is incorrect. In fact some of the documents pro....

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....perty in the course of amalgamation involved payment of consideration, though in the form of allotment of fully paid shares to the shareholders of the amalgamating company. If this is the position, then the assessee will not be entitled to contend that the acquisition of land by them in the course of amalgamation did not involve any cost to them. Since orders are based on wrong assumption of facts....