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2011 (2) TMI 91 - AT - Income TaxSale consideration - The AO has done is to rely upon the hypothetical sale price which does not show or prove that there is some underhand dealing & consideration has passed more than what is disclosed by the assessee - The sale consideration disclosed by the assessee, supported by documentary evidence, cannot be disbelieved merely on the basis of a hypothetical sale price adopted by the Assessing Officer – Hence, the AO has failed to adduce evidence on record in support of understatement of the sale consideration by the assessee - Therefore, AO is directed to adopt the sale consideration of the impugned shares at the figure as disclosed by the assessee for the purpose of computation of capital gain- Appeal is allowed. Computation of capital gains - There is no evidence on record that the transferees were related to the directors of the company – So they cannot be said to be related to the company, as held by the AO, as a company does not have a corporeal existence – Held that: the transactions have taken place at values far lesser than arm’s length price - But in absence of any evidence of receipt etc. of more than stated consideration, the computation of capital gains made by the assessee cannot be altered – Hence the ld. CIT(Appeals) was right in directing the AO to compute the income on the basis of consideration actually received and there is no need to refer the matter to the valuer for finding out correct fair market value of the share, as suggested by the ld. DR.- The appeal is dismissed.
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