Allahabad H.C : Whether the Tribunal was correct in law in holding that there was not only inadequate consideration but that the assessee could not have bona fide belief that he had transferred the shares for adequate consideration by interpreting adequate consideration to mean market value of the shares ?

BY THE COURT

Having heard learned counsel for the parties we are satisfied that the following questions of law do arise out of the order of the Tribunal .

“1. Whether the Tribunal was correct in law in holding that there was not only inadequate consideration but that the assessee could not have bona fide belief that he had transferred the shares for adequate consideration by interpreting adequate consideration to mean market value of the shares ?

2. Whether, on the facts and according to the provisions of law, the imposition of penalty is not erroneous, illegal and excessive ?

The Tribunal, Delhi Bench ‘B’, New Delhi, is directed to draw up a statement of the case and refer the aforesaid questions of law for the opinion of this Court.

The assessee will be entitled to its costs which are assessed at Rs. 125.

[Citation :180 ITR 210]