TaxTMI 
TaxTMI 
2025 (12) TMI 288
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....he assessment year 2011-12 under Section 147/143(3)/153A of the Income-tax Act, 1961 (hereinafter 'the Act') vide his order dated 17th December, 2018. 3. Brief facts are that the assessee was covered under the search and seizure operation under Section 132 of the Act conducted at the residential premises of the assessee along with AEC Group of cases on 17th August, 2011. During search, a MOU entered into between Shri D.K. Gupta and Shri Sanjeev Aeren dated 10th August, 2011 was seized, wherein the total value of the immovable property at 15/1, Prithviraj Road, New Delhi, which is under the equal ownership of 50% each in the hands of both the companies i.e., Shrey Properties Pvt.Ltd. and Snerea Properties Pvt.Ltd., was valued at R....
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....oted that the income chargeable to tax has escaped assessment and therefore, the assessee was show caused as to why an amount of Rs. 2,53,20,000/- should not be treated as capital gain and added to the declared income of the assessee. 4. The Assessing Officer reached to this amount of Rs. 2,53,20,000/- by observing that the stake of the assessee as a shareholder in each of these companies i.e., Shrey Properties Pvt.Ltd. and Snerea Properties Pvt.Ltd., which earlier stood at 2.25% as on 1st April, 2010, got reduced to 0.562% in each of these companies after issuance of shares in each of these companies to ADTV Communications. The Assessing Officer computed the proportionate value and noted that the ownership of the assessee in the propert....
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....ransaction. Learned Counsel for the assessee relied on the findings of the learned CIT(A) as noted in Paragraph No.5.2 and 5.3 as under :- "5.2 Findings: i. This is a matter of fact and even admitted by the Id. AO in his assessment order that appellant has not sold any share of M/s Shrey Properties Pvt.ltd. and M/s Snerea Properties Pvt.Ltd. during the year. ii. However, there is reduction of % shareholding of appellant in these two companies on account of fresh issue of shares to M/s ADTV Communications Pvt.Ltd. iii. It is not in the hands of minority shareholders to control the company in issuing of shares to the existing shareholder or to some new investor. iv. This is the decision of the Boar....
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....ompany and had he relinquished his right to these shares in favour of M/s ADTV Communications Pvt.Ltd. for some tangible gain which can be converted into monetary value, then that monetary gain could have been taxed in the hands of the appellant as Short Term Capital Gain which is not the case in present case. 5.3 In view of the above discussion, it is held that there was no transfer of shares of M/s Shrey Properties Pvt.Ltd. and M/s Snerea Properties Pvt.Ltd. by the appellant as her shareholding in both the companies has remained unchanged during the year and further there is no relinquishment of right as envisaged by the Id. AO, the addition of Rs. 2,53,20,000/- on account of Short-term Capital Gain is deleted and this ground of ....
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....iraj Road Property, if any, had taken place between the shareholders by transferring the shares to the Transferee. Therefore, the income or deemed income had arisen in the hands of the transferors and not the Assessees. 15. The fundamental error committed by the AO is proceeding on the assumption that the acquisition of indirect interest in the subject property by transfer of shares or allotment of shares of the Assessees results in the Assessees being divested of any interest or title held by them in the subject property. 16. Whilst the learned ITAT accepted the Assessee's contentions, the learned ITAT faulted the CIT(A) for not bringing in detail facts as to how the Prithviraj Road Property was held as stock-in-trade....
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.... the assessee are dismissed. Decision pronounced in the open Court on 14th November, 2025. ============= Document 1 (10)* AEZ Sold 20 Lac. Share for Rs. 25/- each - Total Rs. 5 crs (11)* Notice U/s 147/148 issued on 31.03.2018 for Relinquishment of Right in Shares of SHrey and Snerea by fresh issues share M/s Sppl & Snppl. (12)* Sanjeev (13)* Shreay (15)* Sunita" (16)* Sanya (14)* AEZ (17)* Not Assesses (18)*Assesses u/s 153A On 31/3/2014 [19]*147/148 - Proceedings were started by the Ld. AO despite objection. (20)*Property Presumed to be of Rs. 150 Cr without referring to Valuation U/s 142A of IT Act. Sanjeev shrey AEZ Sunita Sanya (12)* No sale of share (13)* No sale of share (....