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TMI Blog2011 (4) TMI 643X X X X Extracts X X X X X X X X Extracts X X X X ..... tamp valuation authority shall be considered for the purpose of computing capital gain as per section 50C of the IT Act. long-term capital loss - shares transaction - find that the assessee has given the copy of the transfer deed, share certificate as well as shareholders registered. These documents clearly show that the assessee has transferred 60,000 shares of "ACPL" to Smt. Poonamben Ashokbhai Patel on 18-10-2003 - The shares were sold at the rate of Rs. 5 per share. That Mukund K. Patel & Co, Chartered Accountant have valued the shares at Rs. 4.73 per share - The copy of the valuation is given at page No. 51A of the assessee's paper book - find that he valued the shares by adopting the market value of the asset as per the Schedule-III to Wealth Tax Act. No infirmity in the working of the auditor is pointed out - The assessee has sold the shares at a value slightly higher than the market value determined by the auditor - The assessee has also explained the circumstances in which he sold the shares - Decided in favour of assessee. Capital gains from the sale of land - As per the agreement to sell dated 3-4-1999, the assessee was given the possession of the property and the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... milar to the issue raised by Ground No. 1 of the assessee's appeal. He has stated that during the year under consideration, the Assessing Officer made the addition on account of capital gain in respect of sale of two assets - one at Tarsali and second at Kotali Dumad. That by mistake, while filing the appeal, the issue relating to one asset was mentioned and other omitted to be mentioned which is being mentioned by way of additional ground. The limited issue in Ground No. 1 as well as additional ground is whether section 50C would be applicable when the stamp duty authority has not disturbed the value declared for the purpose of stamp duty. He further explained that in respect of the land at Tarsali initially there was only development agreement. The same was registered and value declared by the assessee was accepted by the stamp duty authority and no further stamp duty was levied. Even when the flats were constructed on this land and flats were transferred, the value declared was accepted by the stamp duty authority. Similarly, in respect of the land at Kotali Dumad also the value declared in the sale deed was accepted by the stamp duty authority and no demand for the extra pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the purpose of computing the capital gain. In our opinion, this exercise made by the Assessing Officer is to be made by the stamp valuation authority and not the Assessing Officer. The Assessing Officer has to consider the value adopted or assessed by the stamp valuation authority for the purpose of payment of stamp duty in respect of such transfer. The learned counsel for the assessee has made a statement at the time of hearing that in respect of transfer of asset during the year under consideration, the value disclosed by the assessee was accepted by the stamp valuation authority and the assessee was not required to pay any extra stamp duty. Once a document is registered with the stamp duty authority, the value adopted/assessed by him for the purpose of payment of stamp duty in respect of such transfer has to be considered as value for the purpose of "(b)". The Assessing Officer cannot substitute the value which the stamp duty authority ought to have adopted for the purpose of stamp duty. However, whether the value disclosed by the assessee was accepted by the stamp valuation authority, for the purpose of stamp duty needs verification at the end of the Assessing Officer. We th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing to carry on the business in the said company. After the death of "AMP" since the assessee was not willing to carry on the business, therefore, he deemed it proper to transfer the shares. The shares were transferred to the wife of "AMP" and not to any outsider or third party. It was mere incidental that during the year under consideration, there was long-term capital gain on the sale of the land. He also stated that even if the assessee sold the shares to set off the capital loss against the capital gain, there is no illegality in it because if the value of shares held by the assessee in "ACPL" has eroded then the assessee may decide the proper time to sell such shares. The assessee has sold the shares as per the value of the shares determined by the auditor based upon the assets of the "ACPL". He also referred to various documents in the assessee's paper book so as to point out that the shares were actually sold as well as transferred during the accounting year relevant to the assessment year under consideration. In this regard, he referred to share transfer deed, share certificate, copy of share-holders' register in the company's books etc. 10. The learned DR, on the other h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3-4-1999, because the purchase agreement did not confer a title which could be transferred by him to some other person and he could not transfer what he did not possess. 2. The ld. CIT(A) erred in deriving the meaning 'held' in section 2(42A) from the deeming clause of section 2(47)(vi) when the deeming clause applies only where the word 'transfer' occurs in the Act and cannot be stretched beyond the limited sphere of the meaning of transfer occurring in the Act as per rule of interpretation settled in the case of CIT v. Cambay Electric Supply Industrial Company Ltd. 113 ITR 84, 93 (SC)." 13. The only dispute raised by the Revenue is whether the capital gain arising from the sale of land at Tarsali is to be treated as long-term capital gain or short-term capital gain. The Assessing Officer, after considering the date of purchase has come to the conclusion that the sale was made within the three years from the date of purchase. However, the learned Commissioner of Income-tax (Appeals) accepted the assessee's contention and held as under: "As regards (ii) above, it is observed that it is not denied or disputed that the appellant had entered into an agreement to sale dated 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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