Dismissing the appeal filed by the Revenue, the Court held that the Assessing Officer was not justified in making an addition in the hands of the assessee company under section 68 solely on the basis of an estimated market value of a property for the purpose of valuation of shares transferred by the shareholders, since the same property was neither sold nor transferred by the assessee company. The Court noted that although a Memorandum of Understanding was found during the search proceedings indicating a transfer of shares, the assessee had not transferred any title or interest in the property and continued to remain its owner. It was further observed that the transaction, if any, was undertaken between the shareholders through transfer of shares, and accordingly, any income or deemed income could arise only in the hands of the transferor shareholders and not in the hands of the assessee company. The Court also clarified that the acquisition of an indirect interest in property through share transfer does not divest the assessee of its ownership, and any tax incidence, if applicable, would be confined to the transacting shareholders.(AY. 2011-12)