“Section 55(2)(ab)”

Bang Equity Broking Private Limited, Mumbai vs. ACIT-Circle 4(1)(1), Mumbai

In the result, the appeal of the assessee is allowed

Bench: SHRI ANIKESH BANERJEE (Judicial Member), SHRI MAKARAND VASANT MAHADEOKAR (Accountant Member)

original cost of the erstwhile BSE membership card and not at its written down value. This alternate claim accords with the provisions of section 55 (2)(ab) and had been claimed by way of an additional ground in the appeal before the learned Commissioner (Appeals), but failed to be adjudicated ... ought to have claimed cost of acquisition of the BSE shares sold at the original cost of acquisition of the BSE membership cards (Section 55 (2) (ab) and not at w.d.v, of the membership cards. Further period of holding should have been taken at the date of acquisition

Iit Investrust Limited, Mumbai vs. Income Tax Officer, 491)(2), Mumbai

same was reclassified under the head Investments in the annual accounts for the year ended 31st March 2006. 2. Per section 55(2)(ab) of the Act, the cost of acquisition of the equity shares has to be considered at the cost of acquisition of the membership rights

Mukul H Dalal, Mumbai vs. ITO 2(2)(3), Mumbai

In the result, assessee’s appeal stands dismissed

Bench: Shri Shamim Yahya (Am) & Shri Pavan Kumar Gadale (Jm)

which the assessee hay enclosed a copy with his submission dt.23-12-2010. In this regard, it is seen that the provisions of section 55(2)(ab) are applicable in determining the cost of the shares as they have been received by him on the basis of his membership to the Stock ... asset to the assessee or the fair market value of the asset on 01-04-81 at the option of the assessee. Since, section 55(2)(ab) applies in this case and as the provisions of section 55(2)(b)(i) relate to any other capital asset", the cost

Rosy Blue Securities P.Ltd, Mumbai vs. Addl CIT RG 4(2), Mumbai

In the result, appeal filed by the assessee is partly allowed

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Pavan Kumar Gadale, Hon'Blem/S. Rosy Blue Securities Pvt. Ltd., V. Addl. Cit – Range – 4(2) 154/C, Mittal Court Aayakar Bhavan, M.K. Road Nariman Point, Mumbai -400021 Mumbai - 400020 Pan: Aaacr4082Q

original cost of acquisition of membership rights of the BSE). It is submitted that in accordance with the provisions of section 55(2) (ab) of the Act, the cost of acquisition of the membership rights of the exchange is deemed to be Cost of the shares received on demutualization. Therefore ... above order, we decide this issue against the assessee.” 6. With regard to Ground No. 2 the issue involved is provisions of section 55(2)(ab) of the Act as per which cost of acquisition of membership rights of the exchange is deemed to be the cost of shares received