2016 (6) TMI 968

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....of short term capital loss of Rs. 8,03,896/- on sale of assets on the ground that the assessee had not obtained any valuation report at the time of selling the assets and accordingly, the loss claimed by the assessee on sale of assets was not allowable. 2] The learned CIT(A) erred in holding that the loss claimed by the assessee was not allowable since the assessee could not support it with proper evidences. 3] The learned CIT(A) failed to appreciate that the loss claimed by the assessee on sale of assets was genuine loss and there was no reason to disallow the same while computing the income of the assessee. 4] The learned CIT(A) erred in not appreciating that. a. The assessee had recorded the actual sel....

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....ted that separate WDV of those assets was not available. Consequently, the short term capital loss claimed by the assessee under section 50 of the Act was disallowed and addition was made in the hands of assessee to the extent of Rs. 8,03,896/-. 5. The CIT(A) upheld the order of Assessing Officer noting that out of total sale of plant & machinery, almost 45% of assets were sold to the concerns, where one of the partners was having 33% share. Where the assessee had failed to submit copy of assets valued by the Registered Valuer so as to arrive the market price of the assessee, the CIT(A) upheld the action of Assessing Officer in disallowing loss of Rs. 8,03,896/-. 6. The assessee is in appeal against the order of CIT(A). 7. The lear....

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....eing made to sister concern and also to furnish separate WDV of these assets, which were sold to the sister concern and others. The Assessing Officer in the absence of details observed that the assets were sold to the sister concerns and other persons on throw away price and therefore, he disallowed the short term capital loss of Rs. 8,03,896/-, which action of the Assessing Officer has been upheld by the CIT(A). 10. There are two aspects to the claim of loss by the assessee on sale of its assets. First of all, all these assets were used in chemical industry carried on by the assessee and had its wear and tear. Where the plant has been closed down by the assessee, the whole plant & machinery which was part of fixed assets owned by the as....