Case Law Details
ITAT New Delhi held In the case of Venus Financial Services Ltd. vs. ACIT that the Assessing Officer has no power to replace the value of the consideration agreed between the parties with any fair market value or estimation. Only because the company whose shares have been sold, had shown the book value of shares at the rate of Rs.3.50 per share, the Assessing Officer was not justified to ignore the price agreed between the parties and to doubt the genuineness of the claimed loss, even ignoring the valuation report.
Facts of the Case
The assessee company was engaged in the business of investments and purchase/sale of land and immoveable property. The assessee claimed capital loss of Rs.5,21,22,725. The Assessing Officer asked to furnish complete details of shares sold during the year on which loss was claimed. The assessee showed long term capital losses on sale of shares of three unlisted companies, namely, the Pioneer Ltd., Ultima and Solaris Holding Ltd. These shares were sold by the assessee at par and the loss arisen was due to indexed cost. The Assessing Officer accepted the claimed loss regarding the shares transaction of Ultima and Solaris Holdings Ltd. but did not accept the claimed loss on sale of shares of the Pioneer Ltd. as the assessee was failed to produce complete documents along with copy of share transferred deed and confirmation of the buyer for consideration. The Assessing Officer accordingly held that the loss claimed by the assessee on sale of unlisted shares of Pioneer Ltd. remained unsubstantiated and unverified and added the claimed loss of Rs.4,47,55,491 by way of disallowance.
Contention of the Assessee
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