TaxTMI 
TaxTMI 
2026 (7) TMI 481
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....25 wherein the appeal filed by the assessee against the assessment order u/s. 143(3) r.w.s. 144B of the Income Tax Act, 1961 [the Act] passed by the Assessment Unit, Income Tax Department (the ld. AO) was allowed. Therefore, the Assessee's claim was accepted by the learned CIT - A and hence the learned AO is aggrieved and is in appeal. 02. At the outset, the appeal is barred by 4 days. The Revenue has filed a petition for condonation of delay stating the reason for delay being due to pressing time barring matters and other miscellaneous works. As the delay is nominal, no objection from the side of Assessee, we condone the delay. 03. The sole issue in this appeal is whether the learned CIT-A was correct in treating the sale of shares o....
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....d also purchased property from Embassy. 06. He filed his return on 27 February 2021 declaring total income of Rs. 2,345,177, including short-term capital gains of Rs. 16,612 from the sale of equity-oriented mutual funds. The case was selected for limited scrutiny to examine the substantial investment in the property and the claim for deduction under section 54F. 07. In response to the assessing officer's queries, the assessee produced the sale deed dated 3 August 2019, the share purchase agreement dated 27 June 2019, and the share transfer form. He also submitted Embassy Property's ledger account relating to the house purchase, a valuation report dated 26 June 2019 issued by Real Growth Securities Private Limited under Rule 11UA of th....
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....ng the facts and the additional evidence, the learned CIT-A noted that the assessee had sold shares of NAM Estates for Rs. 61,894,366, although their value had been shown as nil in the valuation report. The learned CIT-A observed that this nil valuation arose because the report adopted the acquisition cost of the land bank held by NAM Estates rather than its fair market value. According to the learned CIT-A, if the underlying land was valued at market rates, the share valuation was justified and the assessing officer's assumption that the shares had no value could not be sustained. On that basis, the learned CIT-A held that section 69A of the Act had no application to the sale of shares of a private limited company where the consideration r....
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....Estates to Embassy Property, which was itself a shareholder in that company. According to the Revenue, those shares had no real value yet were sold for a substantial consideration of Rs. 6 crores. The Revenue further pointed out that the assessee then purchased house property from the same builder for approximately the same amount. On that basis, the ld. AO treated the arrangement as a sham transaction and denied deduction under section 54F of the Act. 13. We have carefully considered the rival submissions and perused the orders of the lower authorities. The material facts are straightforward. The assessee sold shares of NAM Estates to another shareholder for Rs. 60,800,000. The ld. AO doubted the transaction because the valuation report....