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2017 (5) TMI 19 - AT - Income TaxAdopting the sale consideration of shares to be the index cost of acquisition - Held that:- The returned income for assessment year 2006-07 and 2007-08 was for ₹ 26,775 and ₹ 9465/- respectively. Advance and self assessment tax was not paid, only TDS was claimed. The total share capital of the company was of ₹ 9,70,000/- only and the reserve and surplus declared were ₹ 79,16,450/-. The ld AR has not produced further details of the sales and closing stock as declared in the P&L account even when these were asked by the Bench. All these facts in respect of these two purchase companies suggest that these companies’ were not having sufficient worth to purchase the shares of crores of rupees when the market value of the shares was zero due to the negative net worth of the company MSIL and when the sales of the shares were suspended at stock exchange. The transaction was claimed to be through negotiations but how these two companies of small worth agreed to purchase shares of negative worth by paying crores rupees. By this transaction, the assessee had claimed loss of ₹ 80,88,29,697/- on the inquiry from the Bench. Ld. AR stated that the assessee had not utilized the benefit of this loss till date. Therefore, all these factual aspects need to be looked into prior to finalization of the issue. Hence, in the interest of justice and equity, the issues under appeal are restored back to the file of ld. CIT(A) to decide de novo. Accordingly, the appeal of the revenue is allowed for statistical purposes only.
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