regarding share market - STCG

This query is : Resolved

Ajay (Querist)
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18 September 2010
if mr x has purchased 1000 listed Share of XYZ Co.LTD for Rs. 10 per share on(say 01.04.2010)

in next 6 month (say 1.10.2010) its Market price jump to Rs. 100 per share

now on 01.10.2010 if Mr.x gives the above share to Mr.Y(friend of Mr.x) on LOAN (With or Without Consideration)

Mr.Y sell same @ Rs. 100. on 2.10.2010
and on 31.03.2011 Mr.Y purchase same from Market @ 110 and repaid his Loan of 1000 share to Mr.x

and Mr.x sell his 1000 share @ 112 per share on 2.04.2011

wat will be tax consequence for Mr.X and Mr.y

plz reply

mohinder kansal

mohinder kansal (Expert)
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19 September 2010 how one can sell something which doesn't belong to him. pl. clarify the facts in detail, alongwith nature of documents executed between two friends. in these circumstances, in my opinion, all profit will belong to X as the shares might have been travelled through his dmat account only.