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Effective date of transfer of shares for capital gains when agreement to transfer of shares is revocable
Case Law Details
- Case Name
- Mrs. Hami Aspi Balsara Vs ACIT (ITAT Mumbai)
- Courts
- ITAT Mumbai
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Recently ITAT Mumbai in the case of Mrs. Hami Aspi Balsara (Taxpayer) v ACIT. [2009-TIOL-789-ITAT-MUM] held that where a transfer of shares is made conditional upon fulfilment of certain covenants by the parties, the transfer can be regarded as complete only upon the fulfilment of such covenants. In the facts of the present case where the Taxpayer entered into an agreement to sell the shares that were held, the ITAT held that the transfer by way of extinguishment of rights did not arise on mere execution of the agreement to sell.
This was because the Taxpayer had the right to ...
