TaxTMI 
TaxTMI 
2016 (2) TMI 430
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 1. "Whether in the facts and circumstances of the case, the ld. CIT(Appeals) is justified in allowing the long term capital loss of Rs. 45,69,287/- on the sale of 5,800 shares of M/s R.B. Credit (P) Ltd. ignoring the fact that the shares having face value of Rs. 10/- were acquired by the assessee in Date of Hearing 03.12.2015 Date of Pronouncement 11.12.2015 March, 2000 and January 2002 at a premium of Rs. 40/- (50,000 shares) and Rs. 240/- (8,000 shares) but the sale was effected by the assessee at the face value of Rs. 10/- only on 29/09/2013 and 20/10/2013 respectively. 2. That the appellant craves leave to add, modify and/or delete any grounds of appeal. 3. In the facts and circumstances of the case, the order of t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Officer. 2.2. Aggrieved by the order of the ld. CIT(A) the assessee had filed appeal before this Tribunal being ITA No. 1540/D/2008. This Tribunal vide its order dated 30/12/09 directed the ld. Assessing Officer to examine the matter afresh vide para 16 of the order, which is reproduced below: "After considering the assessment order as well as order of CIT(A), we are of the opinion that no material has been brought on record by the assessee to justify that the purchase price given by him for the shares was a justified price and similar is the position with regard to sale price. There is no material on record to show also that the shares purchased and sold by the assessee were not belonging to the family concern. There is lack of....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... ld. CIT(A). Before the ld. CIT(A) the assessee filed an affidavit stating that, the assessee had not received the assessment order and the notice of demand, and it was only after the receipt of the order passed u/s 271(1)(c) of the Act dated 29/06/2011, that the assessee gathered regarding the assessment being completed. 3.1. It was noted by the ld. CIT(A) that the assessee had claimed a long term capital loss of Rs. 45,69,287/- on the sale of 58,000 shares of M/s R.B. Credit Pvt. Ltd. having face value of Rs. 10/- which were acquired by the assessee in March, 2000 and January, 2002 at a premium of Rs. 40/- (5,000 shares) and Rs. 240/- (8,000 shares) respectively. After indexing the cost of acquisition, the resultant long term capital l....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e order dated 27/02/2015 in the case of ACIT, Circle (1), Meerut vs. Shri Aditya Gupta in ITA No. 4938/D/2011 for A.Y. 2002-03 (copy of the said order was furnished which is placed on record). It is submitted by the ld. AR that Shri Ashish Gupta is the brother of assessee herein, and the transactions in shares were similar in both these cases and that this Tribunal has dismissed the appeal filed by the Revenue in the case of ACIT vs. Shri. Ashish Gupta in ITA no.225/D/2012 vide order dated 9.08.2012 and ACIT vs. Sh. Aditya Gupta in ITA no. 4938/D/2011 for asst.yr.2002-03, vide order dated 02.2015. 5.1. The ld. AR submitted that the long term capital gain or loss is to be computed in the manner as laid down in section 48 of the Act as in ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....8,000 shares) respectively. After indexing the cost of acquisition, the resultant long term capital loss was worked out at Rs. 45,69,287/-. 6.1. Considering the above submission by both the parties, we find that, during the year under consideration the Assessing Officer has accepted the claimed loss regarding the shares, but has doubted the genuineness of the claim on the basis that, the shares have not been valued at market price. It has been contended that the authorities below have overlooked that the shares were duly transferred in the name of the other party, and the consideration was received by cheque. 6.2. Besides the factual contention of the assessee, the long term capital gain or loss is to be computed in the manner, as lai....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s reached before us. We have carefully considered the facts of the case and have gone through the assessment order, the ld. CIT(A's order and order of the Hon'ble ITAT, we have noted that sale and purchase of share was done through cheques and transfer of shares was properly supported by the transfer deeds and complete formalities were done by the issuing company in respect of allotment of shares and transfer of shares. Nothing adverse was brought by the Assessing Officer except his belief that assessee is not expected to sell shares below the book value section 48 clearly states that for the purpose of calculation of capital gain of shares, it is only the sum received which can be considered for calculation of capital gain. In view of the ....