9911796707
TMI Blog2002 (10) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... same finding. Thus, even accepting the contention of the appellant that it is the price which is agreed to by the parties which should be taken as the full value of the consideration received, the said test is satisfied in the present case. - The Tribunal had directed the assessing authority only to adopt Rs. 38.50 per share which is the price per share agreed to by the parties. We are in full agreement with the order of the Tribunal X X X X Extracts X X X X X X X X Extracts X X X X ..... capital gains on that basis. Shri P. Balachandran, learned counsel appearing for the appellant, submits that the assessing authority and the Tribunal had erred in departing from the value of the share of ESSAR agreed to by the parties and in adopting a different figure as the value of a share of ESSAR. Counsel also relied on the decisions of the Supreme Court in CIT v. George Henderson and Co. Ltd. [1967] 66 ITR 622 and the decision in CIT v. Gillanders Arbuthnot and Co. [1973] 87 ITR 407 in support of his contention. We also heard Shri P.K.R. Menon, learned senior standing counsel appearing for the respondent. Senior counsel took us to the relevant portions of the Tribunal's order (paragraphs 8 and 10) and submitted that the Tribunal had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 31-12-1987 20 per cent. Period ended 30-6-1989 (18 months) 30 per cent. Year ended 30-6-1990 22 per cent. 2. The offer: ESSAR together with Essar Investments Ltd. (another company belonging to the Essar group, details of which are given in Schedule 1) has acquired 1,33,235 equity shares of South India Shipping Corporation Ltd. (SISCO) of value of Rs. 100 each, as detailed below, at a price of Rs. 1,500 per equity share (hereinafter referred to as the acquisition price). Name of company No. of shares Per cent. Essar Shipping Ltd. 1,19,985 20.00 Essar Investments Ltd. 13,250 2.21 ---------- ------- 1,33,235 22.21 ----------- -------- In addition to the above, Essar Investments Ltd. also owns 15 equity shares of SISCO of face va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... immediately preceding this date. The closing market price of ESSAR shares was Rs. 38.50 per share at Madras Stock Exchange as on March 6, 1991, which was the date on which ESSAR's board of directors decided on the consideration to be offered to the shareholders of SISCO." The contention of counsel for the assessee is that the consideration for the sale of the shares of SISCO has been specifically stated in clause 3 of the offer under the caption "consideration" and that as per the said clause, consideration for every one equity share of SISCO is 50 equity shares of ESSAR (face value of Rs. 10 each) plus Rs. 65 in cash. The further contention is that the market price referred to thereunder is only to show the creditworthiness of ESSAR Comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces, the offer price is more than the highest market price of the equity shares of SISCO during the six months immediately preceding to this date." The offer further states that: "The closing market price of ESSAR shares was Rs. 38.50 per share at the Madras Stock Exchange as on March 6, 1991, which was the date on which ESSAR's board of directors decided on the consideration to be offered to the share holders of SISCO." According to us, these two provisions in clause 3 of the offer clinch the issue and make the position clear that the price offered by ESSAR for one equity share of SISCO is 50 ESSAR shares having a market price of Rs. 38.50 plus Rs. 65. Reading the offer as a whole we are unable to agree with counsel for the assessee tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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