Section 50C not apply if Sale Price is Above FMV: ITAT Delhi

BITO-Lagertechnik Bittmann GmbH Vs ACIT (ITAT Delhi)

The appeal concerns the tax treatment of income arising from the sale of shares by a German company, a tax resident of Germany, which held 50% stake in a joint venture with Nilkamal Limited. The assessee sold its entire holding in Nilkamal Bito Storage Systems Pvt. Ltd. for Rs. 51,73,35,000 at Rs. 233 per share. Against a cost of acquisition of Rs. 22,15,50,000, it offered the resulting long-term capital gains to tax.

For the transaction, the assessee obtained a lower deduction certificate and two separate valuation report

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