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2012 (12) TMI 448 - AT - Income TaxJurisdiction of CIT u/s 263 – Held that:- Though the assessment order passed u/s 143(3) does not indicate or suggest that the AO made any enquiry on the issue which is subject matter of order u/s 263, however, AO has considered the assessment order of last year and was aware about the disallowances and the issues involved in the last assessment year. There is no quarrel on the point that if the AO has not made any enquiry and thereby has not applied his mind while framing the assessment order, then the CIT has the jurisdiction u/s 263 to revise such an assessment, if the same is erroneous and prejudicial to the interest of revenue. Capital Gain - Whether market price of the shares can be taken as full value consideration for the purpose of computation of capital gain as per Sec. 48 – Assessee has sold share which they received as bonus share, which had no cost of acquisition – CIT u/s 263 compare the sale prices of share with sale price of shares sold during last year - Held that:- When the transaction is bonafide and the actual sale consideration received by the assessee has not been suspected, then for the purpose of computation of capital gains, the full value of consideration cannot be substituted by market price or value of the capital asset as on the date of transfer. Therefore we hold that the market price of the shares cannot be taken as full value consideration for the purpose of computation of capital gain as per section 48. Appeal decides in favour of assessee
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