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2015 (12) TMI 35 - ITAT HYDERABADComputation of capital gains under S.48 - transfer of equity shares - CIT(A) confirming the order of the Assessing Officer in substituting the full value of the consideration with fair value of consideration - Held that:- The reason for computing the capital gain by the Assessing Officer by estimating the sale consideration is that the shares of Bharati Cements have fetched a higher amount as compared to the shares of Silicon Builders, which is holding the shares of Bharati Cements. As seen from the order of the CIT(A), the Assessing Officer has worked out the net worth of Bharati Cements to arrive at the share value of Bharati Cements to estimate the share value of M/s. Silicon Builders. This, in our opinion, is fallacious. Hon’ble Supreme Court in the case of CIT V/s. George Henderson (1967 (4) TMI 18 - SUPREME Court) has held that the expression “full consideration” in the main part of S.12(B)(2) of the Indian Income-tax Act, 1922 cannot be considered as having a reference to the market value of the asset transferred, but the expression only named the full value of the thing received by the transferor in exchange for the capital asset transferred by him. S.12(B)(2) of the Indian Income Tax Act, 1922 is analogous to S.48 of the Income Tax Act,1961. Thus we direct the Assessing Officer to adopt the full value of consideration as received by the assessee on sale of shares of M/s. Silicon Builders at cost to be the full consideration for computation of capital gains on such sale. - Decided in favour of assessee
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