TaxTMI 
TaxTMI 
2020 (10) TMI 89
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....and in law in holding that the legal and travelling expenses incurred by the appellant wholly and exclusively in connection with the transfer of shares held and transferred by it and claimed against income chargeable under the head "Capital Gains" as not acceptable and hence not allowable. 3. Facts of the case, in brief, are that the assessee is a company and derives income from sale and purchase of shares. It filed its return of income on 30th March, 2011 declaring the total income at Rs. 6,37,34,020/-. The AO, during the course of assessment proceedings, noted that the assessee has shown income from long term capital gain amounting to Rs. 12,92,42,065/- and has claimed deduction under section 54EC of Rs. 50 lacs. According to the AO, the....
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....hereof. He submitted that the CIT(A) has nowhere disputed the allowability of claim of deduction in terms of section 48(1) of the Act, but, denied the claim of the assessee merely on the ground that such claim remained unsubstantiated. He submitted that the CIT(A) during the course of appeal proceedings only directed the assessee to submit documentary evidences in support of transfer related expenses. The various documents furnished by the assessee were not at all considered or even acknowledged by the CIT(A). The ld. Counsel for the assessee filed certain evidences in shape of additional evidence and submitted that these evidences go to the root of the matter and should be admitted for adjudicating the issue. He submitted that he has no ob....
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....ing to Rs. 50 lakhs. The Revenue is not in appeal against the order of the CIT(A) holding such profit on sale of shares as long term capital gain. Therefore, now the only question that remains to be adjudicated is as to whether the various expenses claimed by the assessee on account of travel and litigation expenses to the tune of Rs. 1,69,18,142/- incurred during the financial year 2009-10 is an allowable expenses under section 48(1) to be claimed as deduction from such long term capital gain. As stated earlier, the AO had not adjudicated this issue since he treated the capital gain as short term capital gain. We find the CIT(A) rejected the claim of the assessee on the ground that the assessee could not substantiate its claim that the tra....
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.... long-term capital loss of Rs. 4,12,59,906/- on account of sale of preference shares of Fiza Rozil Exports Private Limited at the price of Rs. 10/- per share which are purchased by the company @ Rs. 100/- per share in the financial year 2001-02. According to AO, the assessee company was conscious of the capital gain being earned on sale of shares, therefore, the preference shares of Fiza Rozil Exports Private Limited were sold at a nominal price of Rs. 10/- each. He, therefore, held that sale of shares was a sham transaction and there was no real transaction. According to the AO, the investment in shares of Fiza Rozil Exports Private Limited and its subsequent sale were only seen as a vehicle for booking losses adopted by the assessee. Rely....
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....th the financials of the company for 2001-02 would show that there is no sham transaction at all. He submitted that the assessee company was expecting relief from the RBI. Further, the various evidences were not at all considered by the lower authorities. He accordingly submitted that the matter may be restored to the file of the AO with the direction to adjudicate the issue afresh in the light of the additional evidences furnished by the assessee. 13. The ld. DR, on the other hand, heavily relied on the order of the CIT(A). He submitted that the assessee was fully aware of the long-term capital gain and to set off the same, he entered into a sham transaction by selling the shares at very low price and claimed huge loss. He submitted that ....