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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 ..... in the hands of the assessee? (2) Whether, on the facts and in the circumstances of the case, the nomination of membership seat by the assessee to another person is a transfer of property within the meaning of section 4(1)(a) of the Gift-tax Act and this is subject to tax as deemed gift under section 4(1)(a) of the Gift-tax Act? (3) Whether, on the facts and in the circumstances of the case, the membership seat of a stock exchange is a 'property' within the meaning of the provisions of section 4(1)(a) of the Gift-tax Act or merely a personal privilege granted to a member by the stock exchange? (4) Whether the deemed gift under section 4(1)(a) of the Gift-tax Act can be charged to tax with reference to an amount of consideration for whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s under section 45 of the Act? (4) Whether the learned Income-tax Appellate Tribunal was justified in upholding that the consideration received by the appellant on account of nomination of another person in his place in respect of membership of stock exchange when the right of such nomination is not a capital asset, is chargeable as capital gains under section 45 of the Act? (5) Whether, on the facts and in the circumstances of the case, is it possible in law to make an addition in the value of the consideration received merely on estimate and in ad hoc manner by stating the basis of equity, justice and good conscience? (6) Whether, capital gains under section 45 of the Act are to be computed on the basis of actual consideration received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice under section 143(2) of the Act was issued. As he obtained the membership card in 1987, the long-term capital gain has been assessed by the Assessing Officer. The Assessing Officer has also applied the provisions of the Gift-tax Act and, the market value of the card of membership of stock exchange has been estimated at Rs. 25,25,000. The difference between Rs. 25,25,000 and Rs. 6,00,000 has been treated as gift-tax under section 4(1)(a) of the Gift-tax Act. In appeal the Commissioner of Income-tax (Appeals) has confirmed the order of the Assessing Officer on both counts, i.e., long-term capital gain on Rs. 6,00,000 and difference of Rs. 25,25,000 minus Rs. 6,00,000 and the amount has been taxed under the Gift-tax Act. In appeal before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lar issue has been considered under the provisions of the Gift-tax Act on transfer of the membership of Jaipur Stock Exchange in the case of Ravindra Kumar Jain v. CIT [2003] 263 ITR 368 (Raj) (DB Income-tax Appeal No. 5 of 2003; decided on April 23, 2003), wherein we have taken the view that when a card of membership of the stock exchange is transferred against consideration, that attracts gift-tax if the consideration received is less than its market value. Following our view in case of Ravindra Kumar Jain v. CIT [2003] 263 ITR 368 (Raj), 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 cons ..... X X X X Extracts X X X X X X X X Extracts X X X X
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