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TMI Blog2016 (6) TMI 852X X X X Extracts X X X X X X X X Extracts X X X X ..... ts shares in M/s. Chaitra Realty Ltd. was determined on consideration of all the evidences led by the Revenue and does not involve the application of any principle of law to determine the same. Thus, the above determination is not a mixed question of fact and law as urged by the Revenue but a pure question of fact. In any event, the Revenue has made no attempt to show how the receipt of consideration by the respondent assessee is on revenue account to attract its classification as 'Income from other Sources'. - Decided against revenue - Income Tax Appeal No. 2361 of 2013, Income Tax Appeal No. 2363 of 2013 - - - Dated:- 14-6-2016 - M. S. Sanklecha And A. K. Menon, JJ. For the Appellant : Mr. P. C. Chhotaray For the Respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of BIFR approval for the assessee? (iii) Whether in the facts and circumstances of the case and in law, the Tribunal has erred in upholding the decision of the CIT(A) that the sum received by the assessee was from the sale of shares and not an appropriation of the surplus of the SPV which was not an asset in the hands of the assessee? (iv) Whether in the facts and circumstances of the case and in law, the Tribunal has erred in holding decision of the CIT(A) that the Prabhadevi property has not been sold when the Reconveyance deed of Prabhadevi property along with original documents of title had been acquired by the purchasers i.e. Vishal Nirman (India) Pvt. Ltd.? (v) Whether in the facts and circumstances of the case and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Hindustan Spinning and Weaving Mills Ltd. It is pertinent to note that M/s. Hindustan Spinning and Weaving Mills Ltd. continues to exist till date owning property at Karad. On 20th February, 2007 M/s. Hindustan Spinning and Weaving Mills Ltd. came out of the B.I.F.R. as it ceased to be a sick unit. Thereafter, on 8th August, 2007 consequent to an offer letter received from one M/s. Vishal Nirman (India) Ltd. dated 31st July, 2007, the respondent assessees sold their shares in M/s. Chaitra Realty Ltd. to M/s. Vishal Nirman (India) Ltd. The entire consideration received by the respondent assessee on the sale of its shares in M/s. Chaitra Realty Ltd. to M/s. Vishal Nirman (India) Ltd. was offered to tax under the head 'Capital Gains' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entire basis of the order of the Assessing Officer that the respondent assessee was a party to the MoU dated 8th May, 2006 was incorrect. The respondent assessee was not a party to MoU. The CIT(A) after considering all the facts including evidences concluded that the receipt of money by the respondent assessee arose on sale of its shares in M/s. Chaitra Realty Ltd. to M/s. Vishal Nirman (India) Ltd. as a result of the offer letter dated 31st July, 2007 received from it. The order further notes that M/s. Chaitra Realty Ltd. continues to exist and owns the property at Prabhadevi. It observed that the value of shares of M/s. Chaitra Realty Ltd. is determined on the basis of the value of its underlying asset viz. land held by it. In the above v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of M/s. Hindustan Spinning and Weaving Mills Ltd. by B.I.F.R., going through the MoU, working out of the scheme and the acquisition of property by M/s. Vishal Nirman (India) Ltd. It is submitted that sale of shares is in fact an appropriation of surplus in the hands of M/s. Chaitra Realty Ltd. and the valuation of the shares was on the basis of the surplus in the hands of M/s. Chaitra Realty Ltd. It is submitted on behalf of the Revenue that the existence of M/s. Chaitra Realty Ltd. has to be ignored. It is submitted that in view of the B.I.F.R. Scheme, the respondent assessees were prohibited from selling and / or disposing of its shares during the pendency of the reference before B.I.F.R.. It is submitted that these respondent assessees ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e us to contend that the entire transfer of shares in M/s. Chaitra Realty Ltd. by the respondent assessees took place on account of the same even when such a sale was prohibited by virtue of the order of the B.I.F.R. It is to be noted that on 8th August, 2007 when the respondent assessees sold its shares in M/s. Chaitra Realty Ltd., M/s. Hindustan Spinning and Weaving Mills Ltd. was already out of the B.I.F.R. Scheme as it was discharged on 20th February, 2007. We are unable to appreciate the submission made on behalf of the Revenue that existence of M/s. Chiatra Realty Ltd. should be ignored even when it continues to exist and also owns the Prabhadevi property. The receipt of consideration by the respondent assessee is only on account of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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