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TMI Blog2012 (10) TMI 312X X X X Extracts X X X X X X X X Extracts X X X X ..... ain in respect of the transaction in the assessment year 1993-94. Transfer of shares took place on 3-1-1992 and not on 22-12-1992 as Agreement of Sale was completed on 3-1-1992 - assessee entitled to the benefit of the provisions of section 47(v) of the Act. - in favour of appellant. - ITA NO. 6781 OF 2010 - - - Dated:- 20-6-2012 - S.J. VAZIFDAR, M.S. SANKLECHA, JJ. Ms. S.V. Bharucha with Ms. Padma Divakar for the Appellant. Mr. B.D. Damodar i/b Kanga Co. for the Respondents. ORAL JUDGMENT. : [Per S.J. Vazifdar, J.] 1. This is an appeal under section 260-A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal (ITAT). The appellant contends that the following questions of law arise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry, 1992 was entered into between the respondent and another company M/s. Ameer Trading Corporation Limited (ATCL). The appellant contends that the shares stood transferred to ATCL on the date of the said agreement dated 3rd January, 1992. The submission is not well founded. The agreement is an agreement to sell and not an agreement of sale as is evident from the relevant terms of the agreement. Some of the terms of the agreement read as under :- (1) the Vendor agrees to sell and the purchaser agrees to purchase subject to the purchaser receiving the permission of the Central Government under section 372 and such other applicable provisions of the Companies Act, 1956, 4,07,320 shares of Rs.60/- per share. (2) the purchaser has this day ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... permission from the Central Government. Only earnest money was paid under the agreement. The clauses expressly state that the balance is to be paid at the time of completion of the purchase , indicating clearly, therefore, that the sale had not been completed. Moreover, the share certificates were to be delivered with duly signed transfer deeds only upon the purchaser making full payment. In the circumstances it is clear that the agreement dated 3rd January, 1992 was an agreement to sell and not an agreement of sale. 6. Admittedly permission of the Central Government under section 372 of the Companies Act was granted by the Central Government only on 9th July, 1992. It was only thereafter on 22nd December, 1992 that the respondent ef ..... X X X X Extracts X X X X X X X X Extracts X X X X
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