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2013 (7) TMI 448 - GUJARAT HIGH COURTCapital loss from sale of shares - tax planning versus tax avoidance - colourable device - whether the shares were sold at a correct price or at the price which was artificially arrived at to inflate the loss – Held that:- the transactions would fall within the legitimate tax planning and would not amount to colorable device for tax avoidance. He found that the assessee had relied on the report of the valuer, who had adopted correct parameters. The assessee had sufficient justification for sale of these shares - CIT [A] as well as the Tribunal both had gone to the factual findings pertaining to the methodology adopted by the valuer in valuing the shares - UNION OF INDIA V AZADI BACHAO ANDOLAN & ANR. (2003 (10) TMI 5 - SUPREME COURT) - We have also noticed that the Assessing Officer except for doubting such valuation, on the basis of circumstances, did not have anything concrete at hand to hold that was not the correct price - In the circumstances, we do not find that the Tribunal had committed any error – appeal decided against the department. Once the transaction is genuine merely because it has been entered into with a motive to avoid tax, it would not become a colourable devise and consequently earn any disqualification.
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