TaxTMI 
TaxTMI 
2021 (1) TMI 159
X X X X Extracts X X X X
X X X X Extracts X X X X
....onsolidated order. We shall first adjudicate the appeal for assessment year 2012-2013 in ITA No.1710/Bang/2016. ITA No.1710/Bang/2016 (Asst.Year 2012-2013) 3. The solitary issue that is raised is whether the CIT(A) is justified in deleting the addition of Rs. 3,33,23,661 being long term capital gains arrived at after recomputing Fair Market Value (FMV) of sale consideration being sale of shares. 4. The brief facts of the case are as follow: The assessee is an individual, deriving income from salary, house property and other sources. For the assessment year 2012-2013, the return of income was filed on 30.07.2012 declaring total income of Rs. 7,22,25,230. During the relevant assessment year, the assessee along other shareholders had sold ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Commerce and the property consultant, the A.O. was of the view that the FMV of the shares disclosed in share purchase agreement was on the lower side. The A.O. was of the view that to arrive at correct FMV of the share sold, the same need to be valued and held that the most appropriate method of valuation of shares is the Net Asset Valuation method (NAV). The Assessing Officer after adopting valuation under NAV method held that the sale consideration of the shares transferred by the assessee and other shareholders has to be regarded as sum of Rs. 166,72,09,092 as against the sum of Rs. 66,81,83,320 as per the terms of sale / purchase agreement dated 20.10.2011. The assessee's share being 13.29% of the total shareholding, the capital gains i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....da in ITA No.1720/Bang/2016 (order dated 20.02.2020) is placed on record. 9. We have heard the rival submissions and perused the material on record. The Tribunal in the case of Sri.Raj Arjun Menda (supra) had decided an identical issue in favour of the assessee. It was held by the Tribunal that the transfer of asets, being shares of a company, there is no provision under the Act for referring the matter for valuation. Accordingly, the Tribunal confirmed the view of the CIT(A) and held the consideration disclosed in the share purchase agreement dated 20.10.2011 should be adopted for the purpose of computation of long term capital gains on sale of shares. The relevant finding of the Tribunal reads as follow:- "3. We have considered the riv....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Act. Only as per section 50C the full value of consideration received or accruing as a result of transfer of certain capital assets being, land or building or both, shall be the value adopted or assessed by the stamp valuation authority of the State Government for purposes of payment of stamp duty. These provisions however, apply only in relation to a transfer of capital asset being land or building or both and they have no application in so far as transfer of shares. Accordingly, the addition made is hereby deleted." 4. In the facts of the present case and in view of this finding of learned CIT(A) that the computation made by the AO is not as per section 48 of the IT Act, 1961 and since, it could not be controverted by the learned DR ....