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TMI Blog2016 (6) TMI 968X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee, partly, the assets have been sold to the sister concern and partly to the others. The first aspect of the issue is the sale price of assets which was received by the assessee which has been declared under section 50 of the Act. We find no merit in the orders of authorities below in not accepting the sale value shown by the assessee in the absence of any evidence found to the contrary that the sale value shown by the assessee in its books of account was understated and not correct. The said sale value cannot be disturbed. Further, the assessee has sold the total plant & machinery and while computing income / loss under section 50 of the Act, since each asset under the head plant & machinery forms part of block of assets, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d CIT(A) failed to appreciate that the loss claimed by the assessee on sale of assets was genuine loss and there was no reason to disallow the same while computing the income of the assessee. 4] The learned CIT(A) erred in not appreciating that. a. The assessee had recorded the actual selling price of the assets sold in its books and accordingly, had computed the short term capital loss and hence, there was no reason to disallow the same in the absence of any evidence that the assessee had actually received any higher consideration on sale of assets. b. Simply because, the assessee had not obtained valuation report did not mean that the loss claimed by the assessee was not genuine and considering the fact that there is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... share. Where the assessee had failed to submit copy of assets valued by the Registered Valuer so as to arrive the market price of the assessee, the CIT(A) upheld the action of Assessing Officer in disallowing loss of ₹ 8,03,896/-. 6. The assessee is in appeal against the order of CIT(A). 7. The learned Authorized Representative for the assessee pointed out that the assessee was manufacturer of chemicals and the assets sold by the assessee were in constant use for the manufacturing activity, which were sold during the year under consideration by the assessee to its sister concern. He further stated that the Assessing Officer had disallowed the claim of assessee as there was no valuation report of sale value of the assessee plus a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... two aspects to the claim of loss by the assessee on sale of its assets. First of all, all these assets were used in chemical industry carried on by the assessee and had its wear and tear. Where the plant has been closed down by the assessee, the whole plant machinery which was part of fixed assets owned by the assessee and was classified in the block of assets as plant machinery had been disposed of by the assessee, partly, the assets have been sold to the sister concern and partly to the others. The first aspect of the issue is the sale price of assets which was received by the assessee which has been declared under section 50 of the Act. We find no merit in the orders of authorities below in not accepting the sale value shown by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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