TaxTMI 
TaxTMI 
2017 (11) TMI 1283
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....Act, 1961(hereinafter 'the Act'). 2. The only issue in this appeal of assessee is against the order of CIT(A) confirming the disallowance of the claim of long term capital loss on account of sale of shares of VRKP Steel Ind. Pvt. Ltd. and Ankola Papers Mills Pvt. Ltd. For this assessee has raised following three grounds: - "On the facts and in the circumstances of the case and in law the Learned Commissioner of Income-tax (Appeals) erred in confirming the addition of Rs. 122,88,426/- as Long Term Capital Gain in the hands of the appellant. On the facts and in the circumstances of the case and in law the Learned Commissioner of Income-tax (Appeals) erred in confirming the rejection of the claim of loss made by the appellant made on acc....
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....al 55000 5,500,000 55000 550000 -4950000 Ankola papers mills pvt. Ltd 19.02.08 40,000 250 10,000,000 15.12.09 40,000 10.00 400000 -9600000 Total - 14550000 4. From the above, AO noted that the assessee claimed to have sold 40,000 shares of Ankola Papers Mills Pvt. Ltd. by a sum of Rs. 10 per share, which was purchased for a sum of Rs. 250 per share. Similarly, 55,000 shares of VRKP Steel Ind. Pvt. Ltd. were sold at Rs. 10 per share against the purchase price of Rs. 100. The AO noted that in the case of Ankola Papers Mills, earning per share for FY 2006-07 was at Rs. 9.19 per share, whereas, it was Rs. 30.89 for FY 2007-08. According to ....
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....g the submissions of the assessee confirmed the action of the AO vide Para 2.3 as under: - "I have perused facts of the case and the appellant's submissions carefully. I find that in the paper book, the appellant has submitted submissions made before AO vide letter dated 29.01.2013, whereby the appellant had referred to the companies in which she is director/ promoter. The statement of application of sale proceeds shows that against sale proceeds of two unlisted companies/three properties. payments made to such companies in which assessee is promoter/director includes payments made to Ceenik Exports (I) Ltd. at Rs.. 8,00,000 0.000, Nitkin Properties & Estates Pvt. Ltd. at Rs. 20.00.000/- & Ceenik Holdings Pvt. at Rs. 3,90,0001-. Th....
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....gives just above ... % of total investment without any fundamental change in valuation of said companies. Moreover. in present case, the appellant is not even able to substantiate that she was in dire need of funds, and that she had actually applied such funds to meet any urgent obligations. The booking of huge losses oil of unlisted shares without substantiating the sharp fall in their valuation. coupled with almost equivalent gain on sale of three residential properties only point to a situation where the appellant has engineered the transactions with a view to manage its legitimate tax liability, which cannot he allowed under any circumstances. In view of the above. I confirm the addition made of Its. 1,22,88,426/- to taxable Long Ter....
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....that the assessee is an investor in many new companies not only in the past but also the future. Some of these companies are start-up companies wherein investment are made at high rates and at premium. At times these companies do not succeed as expected. The assessee had explained the reason for liquidating immovable properties and investments in some companies on account of financial requirement. The assessee is a co-borrower and guarantor for some companies and hence distress sale was made to fund the requirement either directly or through family members. The assessee also withdrew from the PPF account. The investment in the two companies sold was made with a long-term view. These companies were venturing into mining in Goa and had plans ....
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....ed in the following chart: - Name of the Co. Date of purchase/ payment No. of shares Amount Date of sale Sale amt Gain / loss VRKP Steel Industries P. Ltd. 18.09,2007 25,000 2500000 15.09.2009 2,50,000 22,50,000 17.10.2007 1500 15,00000 10.09.2009 1,50,000 13,50,000 18.03.2008 1500 1500000 10.09.2009 1,50,000 1350000/- (A) 55000 5500000 5,50000 49,50000 Ankola paper mills Ltd. 20.07.2007 10,000 25,00,000 16,12.2009 4,00,000 96,00,000 03.08.2007 10,000 25,00,000 05.09.2007 10,000 25,00,000 14.09.2007 6,000 15,00,000 21.09.2007 4000 10,00000 (B) 4,00,000 1,00,00,000 ....