Section 48- AO cannot replace Consideration agreed with Market Value in Calculation of Capital Gain

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.

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