The Tribunal held that the workings provided by the Department ...

Tribunal Corrects Share Valuation, Orders Recalculation of Capital Gains Following Errors in Initial FMV Assessment.

September 26, 2024

Case Laws Income Tax AT

The Tribunal held that the workings provided by the Department for determining the fair market value (FMV) of shares at Rs. 131.86 per share were not in accordance with Rule 11UA of the Income Tax Rules, 1962. The Tribunal had intended to adopt Rule 11UA for FMV determination and had directed the Department to furnish workings accordingly. However, the Department's workings did not consider figures from certain intermediary companies. In the assessee's wife's case, the Tribunal observed that the AO's valuation of Rs. 131.86 per share suffered from fallacies and was not as per Rule 11UA. The AO subsequently computed FMV at Rs. 70.59 per share u/r 11UA in the wife's case. The assessee sought rectification to substitute the FMV of Rs. 131.86 per share with Rs. 70.59 per share, which the Tribunal allowed, considering it an arithmetical mistake rectifiable u/s 254(2). The Tribunal directed the AO to adopt FMV of Rs. 70.59 per share and recompute capital gains accordingly in the assessee's case.

View Source

← Previous Next →

The Tribunal held that the workings provided by the Department ...

Tribunal Corrects Share Valuation, Orders Recalculation of Capital Gains Following Errors in Initial FMV Assessment.

September 26, 2024

Case Laws Income Tax AT

You may also like:

Correct head of income - treatment of income from sale and purchase of shares - business income or income from capital gains - high volume of transactions and frequently...

ITAT ruled on long-term capital gains from unlisted shares under India-Mauritius DTAA, specifically addressing loss carry-forward without offsetting against capital...

The assessee, an NRI and resident of USA, transferred a capital asset and derived capital gain. The asset comprised rights and interests acquired through an assignment...

Capital gain on transfer of shares - capital gains arising from the transfer of shares because of family arrangement - the assessee has transferred the shares based on...

Correct head of income - Gain on sale of shares - nature of purchase of shares either as “investment” or “stock-in-trade” - AO has not given any clear cut finding that...

Exemption u/s. 54EA - transfer of shares held as stock-in-trade - transfer of unlisted shares of DSPML is to be taxed under the head “capital gains” irrespective...

Setting off the long term capital loss arising on sale of shares not subject to STT against long term capital gain arising from sale of Shares subjected to STT exempt...

The case involved determining whether gains from the sale of shares allotted in an IPO should be classified as Short-Term Capital Gains (STCG) or business income. The...

Capital gain from sale of commercial property - intra-head adjustment of loss - Benefit of carry forward of long term capital loss on the sale of shares for the current...

Right to subscribe to shares in future - Section 45(1) provides that any profits or gains from the transfer of capital asset are taxable as capital gains, but then, even...

The case involves the interpretation of u/s 55(2)(b)(i) and u/s 55(2)(aa)(B)(iiia) of the Income Tax Act regarding the cost of acquisition of bonus shares. The Tribunal...

The assessee claimed that no capital gain was chargeable on receipt from transfer of trademark as there was no cost of acquisition. However, the tribunal held that the...

The Appellate Tribunal considered whether the sale proceeds of residential units should be treated as capital gains or business receipts. It was found that the...

Gain on sale of shares - Business income or Capital Gains - Adventure in the nature of trade - Just because the assessee has shifted from the IPOs and has made a...

Gain on sale of shares - capital gains or business income - buy back of shares by the borrowers - the object of trading in shares was lacking in as much as the financial...

Quick Updates: