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TMI Blog2013 (8) TMI 244X X X X Extracts X X X X X X X X Extracts X X X X ..... volume of rights and the time factor, by itself, cannot be presumed as providing good reasons to accept the plea of the assessee that these constraints was in the way of selling these rights at the best possible price in the open market - The Tribunal pointed out that the Revenue had not disputed that the assessee was given the limited period of 30 days for selling the rights, yet, this apart, the assessee had not placed any material before the Court or before any of the Authorities below as regards the steps taken with due diligence to sell these rights in the open market; that ultimately faced with time constraint and the volume of rights to be disposed of, it had to sell the rights at Rs.5/- as against the prevailing market price of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eated as deemed gift. Aggrieved by this, the assessee went on appeal before the Commissioner of Income Tax (Appeal), who upheld the Assessing Officer's action. He, however, directed the Officer to work out the inadequate considieration as per the provisions laid down in Section 4(1) read with Schedule II of the Gift Tax Act and pass order. 2. Aggrieved by this, the assessee went on further appeal before the Income Tax Appellate Tribunal. The assessee submitted that in respect of 3,85,895 rights offered by EID Parry India Ltd., the assessee was given 30 days period either to accept the offer or sell the rights. In view of the financial difficulty faced by the assessee, it proposed to sell these rights in the open market to third parties. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the rights issued. Considering the fact that the Revenue itself was aware of the limited period of 30 days for selling the rights and even though the market value was Rs.21.50 each at the relevant point of time, considering the large scale allotment of rights and the limited period available, the assessee could not get the market price for the sale of large volume of the rights as disclosed by the stockbroker. Thus, the Tribunal accepted the letter of the stock broker, particularly considering the large volume of shares to be sold within the limited period of 30 days available. In the circumstances, the assessment on deemed gift was set aside by the Tribunal. Aggrieved by this, the Revenue has preferred the present appeals. 4. Learned S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tockbroker, in his letter dated 07.8.1993, had expressed his doubt about selling the rights in the open market at the best possible price, but the apprehension expressed by the stockbroker, by itself cannot be taken as a piece of evidence to accept the case of the assessee that the price charged by the assessee can be taken as the best price. In the circumstances, the volume of rights and the time factor, by itself, cannot be presumed as providing good reasons to accept the plea of the assessee that these constraints was in the way of selling these rights at the best possible price in the open market. 7. As is evident from the order of the Tribunal, the assessee itself had admitted that except this letter, it had no other material to subs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... referred to the order passed by it in the case of the assessee in T.C.(A)No.1033 of 2008 to allow the assessee's case, wherein the assessee sold the rights at Rs.5/-, which was far below the prevailing market price. For the reasons stated in T.C.(A)No.1033 of 2004, we have no hesitation in allowing the Revenue's appeal, thereby setting aside the order of the Tribunal. In the circumstances, T.C.(A)No.133 of 2008 filed by the Revenue stands allowed and the order of the Tribunal stands set aside. No costs. 10. The assessee in T.C.(A)No.133 of 2008 has filed a petition to amend the name of the assessee in the cause title as New Ambadi Estates Pvt. Ltd from New Ambadi Investments Pvt. Ltd., in view of the merger as ordered by this Court dated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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