9911796707
TMI Blog2017 (5) TMI 914X X X X Extracts X X X X X X X X Extracts X X X X ..... expenditure could not be ruled out - Held that:- Before the Ld. CIT-A the assessee failed to substantiate its claim that expenses incurred were wholly and exclusively for the purpose of business. The Ld. CIT-A observed that the assessee had not claimed to have maintained details of phone calls made and log book of the cars and in view of those facts personal use could not be ruled out. In our opinion, the finding of the Ld. CIT-A on the issue in dispute is well reasoned and no interference on our part is required. Accordingly we uphold the finding of the Ld. CIT-A on the issue in dispute. - Decided against assessee. - ITA No. 2335/Del/2014 - - - Dated:- 17-5-2017 - SH. C.M. GARG, JUDICIAL MEMBER, AND SH. O.P. KANT, ACCOUNTANT MEMBER For The Appellant : Sh. S.K. Bajaj, CA Sh. R.R. Maurya, Advocate For The Respondent : Sh. S.K. Jain, DR ORDER Per O.P. KANT, A.M.: This appeal by the assessee is directed against order dated 10/02/2014 of the Ld. Commissioner of Income Tax(Appeals)-19, New Delhi, (in short the CIT-A ) for assessment year 2008-09, raising following grounds of appeal: That on the facts and in the circumstances of the case:- 1.a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,23,000/- having rate of ₹ 270 per share. This company was not listed on any stock exchange. The assessee contested that the sale consideration received was higher than the fair market value of the equity shares sold. The assessee submitted the computation of ₹ 270/- per share received as sale consideration as under: Sale Price of 4900 Equity Shares @ ₹ 270 per shares Rs Rs.13,23,000 Calculation of F.M.V. of shares of Dera Farmindale (P) Ltd. Particulars Book Value (Rs.) Fair Market Value (Rs.) Cost of Agriculture Land at Rajgarh 4,98,400 8,50,000 Building under construction 9,38,245 Mutual Fund 16,00,000 8,50,000 Bank Balance 3,15,000 3,15,000 20,15,000 Fair Market Value of 7500 Equity Shares ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the action of the Assessing Officer in replacing the full value consideration received by the assessee by the fair market value, was not in accordance with law. In support of the contention, the Ld. counsel relied on the decision of the Tribunal in ITA No. 1461/Del/2002 for assessment year 1998-99 in the case of Smt. Gurinderjeet Kaur. 5. On the other hand, the Ld. Senior DR, supported the orders of the lower authorities. 6. We have heard the rival submissions and perused the relevant material on record. In the facts of the instant case, the issue in dispute before us is that for computing the capital gain on sale of shares, can full value consideration on sale of shares be substituted by the fair market value of the shares as on date of sale. Section 45(1) of the Act provides that any profit gains arising from the transfer of a capital asset effected in previous year shall be chargeable to tax under the head capital gains . The manner and mode of computation of capital gain has been provided in section 48 of the Act. It is provided therein that the income chargeable under the head capital gain shall be computed by deducting from the full value consideration received or a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f notice as under: For the reasons already stated, we are of the opinion that the expression full value of the consideration cannot be construed as the market-value but as the price bargained for by the parties to the sale. The dictionary meaning of the word full is whole or entire, or complete (Shorter Oxford English Dictionary). The word full has been used in this section in contrast to a part of the price . Consequently, the words lull price mean the whole price . Clause (2) of section 12B itself clearly suggests that if no deductions are, made as 'mentioned in sub-clause '(ii) thereof, then that amount represents the full value of the consideration, or the full price. In other words, when deductions are made as specified in sub-clauses(i) and (ii), then that amount does not represent the full value. The expression full value means the whole price without any deduction whatsoever and it cannot refer to the adequacy or inadequacy of the price bargained for. Nor has it any necessary reference to the market value of the capital asset which is the subject-matter of the transfer. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee claimed expenses of ₹ 1,54,059/- on the vehicle repair and maintenance including depreciation on car and ₹ 1,07,403/- as the telephone expenses. The Assessing Officer made disallowances at the rate of 20% amounting to ₹ 52,326/- on the ground that personal expenditure could not be ruled out. Before the Ld. CIT-A the assessee failed to substantiate its claim that expenses incurred were wholly and exclusively for the purpose of business. The Ld. CIT-A observed that the assessee had not claimed to have maintained details of phone calls made and log book of the cars and in view of those facts personal use could not be ruled out. In our opinion, the finding of the Ld. CIT-A on the issue in dispute is well reasoned and no interference on our part is required. Accordingly we uphold the finding of the Ld. CIT-A on the issue in dispute. The ground of appeal, is accordingly dismissed. 11. The ground No. 3 of the appeal being general in nature, we are not required to adjudicate upon and hence same is dismissed as infructuous. 12. In the result, appeal of the assessee is partly allowed. The decision is pronounced in the open court on 17th May, 2017. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
