The Assessing Officer brought to tax  as short-term capital gains. On appeal the Tribunal held that there is no sale of any capital asset. Further, it is noted that when the valuations of shares and allotment of shares are done as per SEBI guidelines and certified by an independent person and the shares have been issued and exchanged at that value, then there is no germination of any capital gain. It is further noticed that in the appellant’s financial statements, the value of investments in SRL and the value of shares issued are at the same value on the assets and liabilities side, thus, there is no question of earning of any capital gain. The ITAT further observed that the facts and circumstances for AY 2010-11 and AY 2009-10, with the only difference that the swap ratio in the preceding year was in favor of shareholders of SRL and in this year it is in favor of the appellant. It is strange that the AO has chosen to make addition in both the years on these transactions, which are financially opposite in nature to each other, which is incorrect.  (ITA No.234/Mum/2021, dated 25/05/2023] AY 2010-11] AY 2010-11)