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TMI Blog2014 (8) TMI 161X X X X Extracts X X X X X X X X Extracts X X X X ..... ly exclusive and donation is only a type of gift - the donation is to be construed as a form of gift - there can be no question of treating the receipt of shares by the assessee as donation independent of gift - shares of Nicholas Piramal India Ltd. were acquired by the donor in 1997 which were transferred to the assessee by means of donation in December, 2005/January, 2006 - Since the shares con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng-term capital gain instead of short-term capital gain as held by the AO. 3. Briefly stated, the facts of the case are that the assessee Trust received 16,50,000 shares of Nicholas Piramal India Ltd. as donation on 3rd August, 2005. Out of such shares, the assessee sold 4 lac shares of during the period 20th December, 2005 to 3rd January, 2006 for a total consideration of ₹ 11,41,95,430/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eaning of section 49(1)(ii) of the Act. He, therefore, treated gain from the transfer of shares amounting to ₹ 1.13 crore as short-term capital gain and accordingly brought the same to tax. The ld. CIT(A) overturned the assessment order on this point and held the gain to be arising from transfer of the long-term capital asset and, thus, exempt u/s 10(38) of the Act. 4. We have heard the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion comes in affirmative, then, the provision of section 49(1)(ii) would be attracted and the cost of acquisition of such shares to the previous owner will be considered as cost of acquisition of the assessee on the relevant date. In this regard, the ld. CIT(A) has relied on a judgment of the Hon ble Bombay High Court in the case Nirmala Keshawlal A/P of late Parvatibai P. Dabrai vs. Controller of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hares of Nicholas Piramal India Ltd. were acquired by the donor in 1997 which were transferred to the assessee by means of donation in December, 2005/January, 2006. Since the shares constitute a capital asset, it is but natural that on their transfer, the provisions of section 49(1) would be attracted. If such provisions are applied, the resultant gain would partake of the character of long- term ..... X X X X Extracts X X X X X X X X Extracts X X X X
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