COMMISSIONER OF INCOME TAX Vs. SHANTHI CHANDRAN

JUDGEMENT

(1.) THE question referred to us is "Whether, on the facts and circumstances of the case and having regard to the provisions of section 49 of the Income Tax Act, the Tribunal is right in law in holding that the value of shares as mentioned in the family settlement deed and not the cost to the previous owner, should be taken as the cost of acquisition of share obtained by the assessee in the family settlement ?

(2.) THE assessee while they were minors and unmarried, being the daughters of one Jagadish Chandran, received certain shares from Premier Cotton Spinning Mills Ltd., under the settlement effected by their father on 2-3-1977. In that settlement the value of the shares mentioned was higher than the amount for which the said Jagadish Chandran had acquired the shares. Subsequently in the assessment year 1982-83, the assessees sold those shares and derived a capital gain therefrom.

(3.) THE question referred to us is, therefore, answered in favour of the revenue and against the assessee.