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TMI Blog1982 (11) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing authority, who brought to assessment Rs. 1,63,000 thereof as taxable sales turnover. The petitioner objected to this assessment in appeal. The petitioner contended that no sale at all was involved in the transfer of the machinery to the private limited company, because the consideration received by the petitioner was not cash, but only the equity shares of that very company. The receipt of fully-paid shares as consideration, it was contended, tended to make the transaction not a sale, but only a barter or exchange. The Tribunal, however, rejected this contention, applying the definition of "sale" under section 2(n) of the Act, which included transfer of property for valuable consideration. We agree with the Tribunal's determinati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wed up that bargain by further agreeing that the liability of the company for payment of the sale consideration has to be discharged by the issue to the petitioner of fully-paid shares in the company. The resolutions of the company as well as the sale deeds in this case mention clearly that the consideration payable in respect of the transfer of the items of machinery to the company shall be discharged by the allotment of fullypaid shares in the company. The sale in each case was already a completed transaction rendering the company liable for the payment of the price. And, in that situation, the company resolved to discharge the liability, not by payment in cash, but by allotment of fully-paid shares of the company. In this situation, it i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... property in goods by one person to another in the course of business "for cash or for deferred payment or for other valuable consideration". The learned counsel's point was that the expression "valuable consideration", occurring in the definition cannot be given a wide meaning so as to include the allotment of fully-paid shares in consideration of passing of title in the goods as in the present case. The learned counsel referred to a decision of the Supreme Court in Devi Dass Gopal Krishnan v. State of Punjab [1967] 20 STC 430 (SC). In that case, the Supreme Court did not lay down that if there is a transfer of goods for valuable consideration, other than cash, the transaction cannot be regarded as sale. What the Supreme Court meant to la ..... X X X X Extracts X X X X X X X X Extracts X X X X
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