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Holding period of shares transfer by NDTV’s promoter from self to joint DEMAT A/c reckoned from date of transfer

June 18, 2019[2019] 106 210 (Delhi - Trib.)

Income-tax : Where assessee, Director of NDTV Ltd., along with her husband had transferred shares of NDTV from their individual demat accounts to their Joint Demat account, and after almost three months, sold said shares and claimed it to be a long term capital asset considering period of holding as date of acquisition in their individual demat accounts and also claimed cost of acquisition as incurred by them in their individual demat accounts to compute long-term capital gain, since assessee had beneficial interest in demat shares of 'NDTV' in two separate demat accounts i.e. (individual account and joint account) and there is profit or gain on transfer of 12.5 lakh NDTV shares out of joint demat account and this profit is chargeable to income tax as income of beneficial owner i.e., assessee of previous year in which transfer takes place and the cost of acquisition and period of holding of NDTV shares is to be determined on basis of first in first out method, shares transferred by assessee from joint demat account are short-term capital asset as they were acquired only on 28-12-2007 and are sold on 19-6-2008 resulting in short-term capital gain in hands of assessee

• Further, where individual shares lose their identity and lose themselves in wilderness of a homogenous mess, it is mandatory to follow FIFO method. FIFO method will be applied in case of multiple accounts to each of demat account.

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