Shanti Prime Publication Pvt. Ltd.
Section 45, 48, 50C of Income Tax Act, 1961— Capital Gain- Addition made was deleted as contention of the AO that the transaction is not genuine is not based on any evidence brought on record.
Facts: The ground of the appeal relates to loss on sale of the shares held by the lower authorities as not genuine and not allowing set-off of the same against the long-term capital gains.
Held, that AO has not allowed the claim of assessee of the short-term capital loss on sale of the shares .The dispute in the case is regarding the value of the purchase as well as value of the sale of shares. The purchase of shares has been made on 16/03/2009, which falls in assessment year 2009-10. In this year sale of the shares has been made. For the purpose of the computation of the capital gain on transfer of asset, in terms of section 48, the cost of acquisition and cost of an improvement of the asset along with any expenditure incurred in connection with such transfer of the asset, are to be reduced from the full value of the consideration received or accrued as a result of the transfer of the capital asset. Thus in the instant case, first issue of dispute is regarding full value of the consideration received or accrued. The assessee has explained the consideration received of Rs. 50,000/-. The Revenue has not brought on record whether the assessee received consideration more than Rs. 50,000 or consideration more than Rs. 50,000 will be accrued to the assessee. In the relevant year the provision of section 50CB were also not in existence, which provide for deemed sale consideration in case of the sale of the shares less than fair market value. In the circumstances, there is no other option other than the considering Rs. 50,000 as the sale of consideration for the purpose of section 48. Similarly regarding cost of the acquisition also the AO has not brought on record any adverse evidence. The contention of the AO that the transaction is not genuine is not based on any evidence brought on record. The addition has been sustained without any documentary evidences on record, accordingly we set aside the finding of the lower authorities on the issue in dispute. - SMT. ALKA JAIN V/s ASSTT. CIT -  80 ITR (TRIB) 464 (ITAT-DELHI)