9911796707
TMI Blog1981 (11) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... these were sick mills. These shares were sold to M/s Karumuttu Ramaswamy Finance (P) Ltd. For Re. 1 per share, while the face value was Rs. 100 per share and the assessee s cost was also near about the same. Since the assessee along with his two brothers was a shareholder in the purchasing company, he doubted the genuineness of the sale at such a low price and also held the sale to be incomplete in view of the fact that the transfers could not be got registered in the books of the sick mill companies. It was in this view that he disallowed the claim of loss (long-term capital loss) to the extent of Rs. 26,807. In first appeal, the AAC held that there was no material for holding the transactions to be sham. He, however, felt that non-regist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation is paid and the share certificates and transfer deeds are handed over to the purchaser. Registration merely records a transfer that has already taken place. He based his claim on the authority of decision in 49 Com. Cases 662 and 45 Com. Cases 43. The ld. Deptl. Rep. relied upon the order of the authorities below and claimed that the Tribunal had considered registration as occasioning the transfer in ITA Nos, 1516 and 1517/Mds/69-70 dt 22nd July, 1970. 4. We have carefully considered the facts as well as the arguments. There is absolutely no materiel to discredit the genuiness of the transactions. In fact a similar value, it is noticed, has been accepted by the ITO himself in the assessment for the asst. yr. 1975-76. The State Gover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tration, it has been explained, is only due to absence of registers. All other formalities of transfer have been complied with. Supreme Court in V.R. Shelat vs. Pramlal Jayanand Thaker (1974) 2 SSC 323 : 45 Com. 43 SC held that the transferee acquire good title to the shares if he has received a valid instrument of transfer in good faith. In this case, the transfer of shares were not registered before the death of the transferor and could not be registered after her death. Gujarat High Court, in this case, had earlier held that the fact that the transfer was by way of gift made registration necessary as it was not a transfer for consideration. The Supreme Court reversed this view and held that even in the case of a gift, the transfer had be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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