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TMI Blog2021 (1) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... t year 2012-2013. In other words, Sec.50CA of the I.T.Act inserted w.e.f. 01.04.2018 clearly indicates prior to 01.04.2018, there was no provision under the I.T.Act authorizing the A.O. to refer for valuation of shares for the purpose of calculating capital gains. Set off of brought forward capital loss against the capital gain reported for the year in appeal - HELD THAT:- Since we have decided the issue for assessment year 2012-2013 in favour of the assessee, we hold that the assessee is entitled to set of capital loss. It is ordered accordingly. - ITA No.1710/Bang/2016, ITA No.1710/Bang/2017 - - - Dated:- 4-1-2021 - Shri George George K, JM And Shri B.R.Baskaran, AM For the Appellant : Sri.Rajesh Kumar Jha, CIT-DR For t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... areholding of the assessee and other shareholders. They also agreed to pay a sum of ₹ 17,76,61,477 on account of accrued interest on debentures. Thus, the total amount payable by Ambuja Housing to the assessee and other shareholders came to ₹ 84,58,44,797. The assessee held 13.29% of shareholding of the aforesaid MRPL that was transferred and accordingly received an amount of ₹ 11,24,23,600 towards his portion of the shares sold. The assessee on account of the transfer of the shares, computed long term capital loss and the same was carried forward in the return of income filed on 30.07.2012. 5. For assessment year 2012-2013, in the course of assessment proceedings, the Assessing Officer called for details relating to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rieved by the order of the Assessing Officer in substituting the sale consideration for the purpose of calculating the long term capital gains, the assessee preferred an appeal to the first appellate authority. The CIT(A) following the judgment of the Hon ble Apex Court in the case of George Henderson Co. Limited [66 ITR 622 (SC)] and other judicial pronouncements held that there is no provision under the Income-tax Act empowering the A.O. to refer the matter for valuation in relation to transfer of a capital asset, being transfer of shares. Accordingly, the CIT(A) allowed the appeal of the assessee. 7. Aggrieved by the order of the CIT(A) in deleting the addition made by the Assessing Officer towards long term capital gains on sale of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of transfer of capital asset. As per section 50C of the IT Act, 1961, it has been provided that in case of transfer of land / building or both, values adopted or assessed by the stamp valuation authority of the State Government for the purpose of stamp duty may be considered as full value of consideration but in the case of transfer of shares, there is no such provision which authorizes the AO to adopt any other value be it market value. For ready reference, we reproduce para 12 from the order of CIT(A) as under:- 12. Respectfully following the decision of the Hon'ble Karnataka High Court and pronouncement made by the Hon'ble Supreme Court in the case of GEORGE HENDERSON Et CO. LTD., the contentions of the appellant are acce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ale purchase agreement ought to be adopted for calculating the long term capital gains in the case of transfer of shares. It would be relevant to mention that Sec.50CA of the I.T.Act inserted w.e.f. 01.04.2018, would not have application to the instant case, since we are dealing with assessment year 2012-2013. In other words, Sec.50CA of the I.T.Act inserted w.e.f. 01.04.2018 clearly indicates prior to 01.04.2018, there was no provision under the I.T.Act authorizing the A.O. to refer for valuation of shares for the purpose of calculating capital gains. 10. In the result, the appeal filed by the Department is dismissed. ITA No.1707/Bang/2017 (Asst.Year 2013-2014) 11. The issue raised in this appeal is consequential to our decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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