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TMI Blog2004 (4) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... ins under section 45 – we see no infirmity in the order of the Tribunal so far as the direction given by the Tribunal that the value of the transaction should be taken at Rs. 10,00,000 and when the assessee has shown the consideration at Rs. 6,00,000, the balance amount, i.e., Rs. 4,00,000 attracts the gift-tax - held that once the difference between Rs. 10,00,000 and Rs. 6,00,000 are taxed under the provisions of the Gift-tax Act taking the difference as deemed gift, that amount cannot be taxed again in the Income-tax Act - - - - - Dated:- 22-4-2004 - Judge(s) : Y. R. MEENA., SHASHI KANT SHARMA. JUDGMENT These appeals are directed against the impugned order of the learned Tribunal, dated March 13, 2003. It was ordered that both the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present case when the learned Income-tax Appellate Tribunal did not accept the value taken by the Gift-tax Officer? (6) Whether, on the facts and in the circumstances of the case, is it possible in law to determine the value of membership fees merely on estimate and in ad hoc manner and charge the tax on deemed gift on that basis under section 4(1)(a) of the Act?" The assessee-appellant has raised the following questions of law in income-tax appeal: " (1) Whether, on the facts and in the circumstances of the case, the membership seat of a stock exchange is a property or merely a personal privilege granted to a member by the stock exchange and whether the same can be treated as 'capital asset' within the meaning of section 2(14) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Appellate Tribunal can enhance the income assessed by the learned Assessing Officer? (9) Whether, on the facts and in the circumstances of the case, the order passed by the learned Income-tax Appellate Tribunal is not perverse, illegal, unjust, improper and contrary to the material on record and without application of mind?" The main controversy in these appeals is whether the membership of the stock exchange is a property and on its transfer whether capital gains tax is attracted. The controversy has also been raised whether the value of the property should be taken at Rs. 10,00,000. The appellant was a member of the Jaipur Stock Exchange and was running the business of stock-brokership in the name of M/s. S.N. Modani. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m capital gain on that amount. Mr. Jhanwar, learned counsel for the assessee, submits that firstly there should not be tax either capital gains tax or gift-tax on the transfer of a card of membership of the stock exchange. Even if it is taxed and the value of the card on the date of transfer has been estimated at Rs. 10,00,000 when the assessee disclosed Rs. 6,00,000 consideration against transfer of the card of membership, then capital gain can be taxed up to Rs. 6,00,000, which he received against the transfer of membership card of the stock exchange and on Rs. 4,00,000 gift-tax can be charged, but here the Tribunal has taken the view to charge the gift-tax between the difference in the consideration shown and the market value and also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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