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TMI Blog2018 (2) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... l for appellant. Mr. Ajay Vohra, Senior Advocate with Ms. Kavita Jha and Mr. Vaibhav Kulkarni, Advocates for respondents. MR. JUSTICE S. RAVINDRA BHAT (ORAL) The sole question for consideration in these appeals formulated on 18.11.2005, is as follows: "Whether the ITAT was correct in law in quashing the assessment framed by the Assessing Officer under Section 16 (1) of the Gift ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nounced its rights and obtained consideration therefor. They also claimed losses on account of the difference between the material value shown by them (of the rights issue) and the consideration received by them. The Assessing Officer (AO), while considering the income tax returns, held that the transaction was sham and proceeded to disregard the claim for capital loss. However, the assessment was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der made in the income tax proceedings, the ITAT reversed the stand of the AO. It is in this background that the Revenue urges that the notice under Section 16 in the present case is valid. 4. Apart from relying upon the findings of this Court in Commissioner of Income-tax, Delhi Vs. Abhinandan Investment Ltd. (2015) 63 taxmann.com 263 (Delhi), learned counsel for the Revenue submits that the ITA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he declaration with respect to the transaction being sham, was logical. It was urged that once the ITAT took note of the fact that the transaction was invalid or a device, the position with respect to how it had to be treated between the two parties was clear. In these circumstances, there was no question of resorting to the assessee under Section 16 of the Act in the present case. 7. Thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dity of the proceedings, but, did not consider whether in fact the transaction under Section 4(1)(a) amounted to a deemed gift; no conclusive finding in that regard was rendered; nor any finding could have been rendered or was given. 8. For the above reasons, the impugned orders are hereby set aside. The matters are remitted to the ITAT for fresh consideration in accordance with law. 9. The appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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