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2013 (9) TMI 1140 - AT - Income TaxCapital gains (loss) on extinguishment of rights in a defunct company - Exemption u/s 54F - Held that:- There is no finding by the CIT(A) whether the amount of loss claimed by the assessee on account of extinguishment of rights in respect of the shares of a defunct company is factually correct. Similarly with respect to the exemption u/s 54F on account of the capital gain on sale of shares of Ambience Publicis Advertising Pvt. Ltd. invested in the new asset, the CIT(A) has again allowed the claim of the assessee without examination of the correctness of the claim. There is no quarrel as far as the legal aspect of the claims are concerned but before allowing the claim the factual correctness of claim has to be ascertained. It is clear from the details recorded by the CIT(A) that even only a part of capital gain has been invested in the new asset which has been fully allow without considering the proportion of the net consideration/sale proceed to the investment in the new asset. Therefore, we are of the view that the CIT(A) is not justified in allowing the claim without giving an opportunity to the AO to examine the correctness of the claims. Accordingly, we set aside the order of the CIT(A) and remand the matter to the record of the Assessing Officer to consider and decide both fresh claims of the assessee as per law. Needless to say the assessee be give an appropriate opportunity of hearing.
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