Page 23 - Banking Finance January 2019

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S i e otor acci ent r ing on va ation o are re i a ene it
c ai a ent tart
he Su re e ourt has a ed the n hat cou d enef t an start u s n the countr the Mu a Bench of the
r ssa h nco e a A e ate r una A has ru ed that re
ourt for reduc u earned on a ot ent of reference shares a oss
a n ent t cannot e ta ed
n the co en
sat on ranted he tr una sa d the va uat on of shares s not re evant
to the c a ants n a fata otor for deter n n the enu neness of the transact on he
acc dent thout v n a reason for ru n erta n n to Sect on of the nco e a Act stated that the assess n
do n so he tr una had a arded off cer A can on ver f the nature and source and not uest on the enu ne
Rs on ut the h h court ness of the re u on a ot ent of reference shares
reduced t to Rs on n a
Pirama Rea ty case
ea n the case Sa ast an a ra vs
nder Sect on of the Act f a c ose he d co an ssues share ca ta
at ona nsurance o an the
ut s una e to just f the source of nco e of the shareho der then the A can
a e court ncresed the co ensa
treat the a ount rece ved on such ssuance as nco e of the co an h ch
t on to Rs on
then attract nco e ta
he jud ent stated that deduct ons
he ru n co es n an a ea the revenue author t es a a nst the order of
cannot e a o ed fro the a ount
the o ss on of nco e a A ea s n a case re ated to ra a Rea t for
of co ensat on e ther on account
of nsurance or on account of ens on the f nanc a ears and
enef ts or ratu t or rant of e he rea estate co an had ssued cu u at ve co u sor convert e
o ent to a n of the deceased
referent a shares Ss of each to ra a states r vate td for
t sa d a these a ounts are earned
Rs a h and a so char ed share re u for the sa e at Rs re
the deceased on account of con
su t n n a tota of Rs crore he Revenue e art ent contended that
tractua re at ons et een h and
the co an had a ne at ve net orth and suffered osses dur n assess ent
others t cannot e sa d that these
ears and and the re u on Ss of Rs a h as thout
a ounts accrued to the de endents
an as s and the nature and source of cred t ere not roved
or e a he rs of the deceased on
account of h s death n the acc dent va uat on s not re evant for deter n n the enu neness of the transact on
he c a ants de endents are en for the ur ose of Sect on of the Act the r una he d h e ru n n favour
t t ed to just co ensat on under of ra a Rea t he co an had d sc osed the transact on n ts oo s of
the Motor eh c es Act the jud accounts f n statutor for s and rov d n na e address and A of the
ent e has sed
shareho der

AN N NAN | JANUARY | 2019 | 2