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TMI Blog2012 (11) TMI 716X X X X Extracts X X X X X X X X Extracts X X X X ..... - market price of the shares cannot be taken as full value consideration for the purpose of computation of capital gain as per sec. 48 when there is no under statement of sale consideration - Decided in favor of assessee. - IT APPEAL NO. 4822 (MUM.) OF 2009 - - - Dated:- 8-8-2012 - VIJAY PAL RAO AND N. K. BILLAIYA, JJ. B.V. Jhaveri for the Appellant. K.G. Kutty for the Respondent. ORDER Vijay Pal Rao, Judicial Member - This appeal by the assessee is directed against the order dated 12.6.2009 of the Commissioner of Income Tax (Appeals) for the Assessment Year 2005-06. 2. The assessee has raised the following grounds: 1. The Ld. CIT(A) erred in enhancing the assessment at the behest of the Assessing officer w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 143(3) was completed by the Assessing Officer on 28.12.2007 whereby certain additions were made. The assessee challenged the action of the Assessing Officer before the Commissioner of Income Tax (Appeals). During the proceedings before the Commissioner of Income Tax (Appeals), a remand order was passed asking the Assessing Officer to submit the remand report. The Assessing Officer, in the remand report dated 19.1.2009, has pointed out that during the financial year 2003-04, the assessee was allotted 16910 shares @ Rs. 180 per share by M/s Sterlite Industries (I) Ltd. Later on, the company issued bonus shares at the ratio of 1:1 on 31.3.2004 and in this way; the assessee trust has got additional 16910 shares. 5.1 During the year under con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... grievance and therefore, no price was charged from the persons to whom the shares were transferred. The amount was received by the assessee trust from the company. The ld AR has contended that after omission of sec. 52(2), there is no provision in the statute for taking the market price as the full sale consideration on transfer of capital asset. He has relied upon the following decisions: (i) Dy. CIT v. Jindal Equipment Leasing Consultancy Services Ltd. [2011] 131 ITD 263 (ii) ITO v. Manjit Singh [2010] 128 TTJ 82 (Chd.) (UO) (iii) Tej Pratap Singh v. Asstt. CIT [2009] 116 ITD 388 (Delhi) (iv) ICICI Ltd v. Jt. CIT [2008] 115 ITD 25 (Mum.) (v) Moral Trading Investment Ltd v. Dy. CIT [2010] 127 ITD 127 (Delhi) 6.1 On the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a result of transfer of capital asset without any deduction whatsoever and therefore, for computation of capital gains, deductions are permitted as per section 48. Hence, section 48 does not have any reference to the market value of the asset; but it refers only to the consideration received or accruing as agreed between the parties to the transaction. When the bona fide of the transaction and the actual sale consideration received by the assessee has not been suspected, then for the purpose of computation of capital gains, the full value of consideration cannot be substituted by market price or value of the capital asset as on the date of transfer. It is not a case of the Assessing Officer in the remand report or the Commissioner of Income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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