RAJAT LAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS income tax appeal under Section 260A of the Income Tax Act, 1961 (for short, the Act) filed by the assessee appellant arise out of the order dated 30.11.2004 passed by the Income Tax Appellate Tribunal (in short, the Tribunal) relating to assessment year 1997-98 by which the appeal filed by the Joint Commissioner of Income Tax, Special Range, Muzaffarnagar was partly allowed and while setting aside the order of the CIT (A), Muzaffarnagar dated 20.5.2000 deleting the capital gain of Rs.4,77,14,279/- from the total income of the assessee-appellant, as computed by the A.O. The A.O. was made free to tax it, in the order in which the transfer of shares took place in accordance with law.

(2.) THIS appeal was admitted by the Court on 17.1.2005 on the questions of law as follows:-

(3.) ON 19.8.1996, the assessee and his wife jointly entered into an agreement to sell the entire share capital of M/s Rajendra Lal Shadi Lal & Co. Pvt. Ltd. for a sale consideration of Rs.5,00,00,000/- @ Rs.6,250/- per share. As per this agreement the total purchase price of 8,000 fully paid up equity shares of the company was agreed to be Rs.5,00,00,000/-, including the earnest money of Rs.1,25,00,000/-. The balance amount of Rs.3,75,00,000/- was paid in three subsequent installments, as under:-