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2014 (8) TMI 75 - HC - Income TaxAcceptance of book loss on sale of shares Sale colourable device or not shares were sold to the joint venture partner - Held that:- Assessee was required to obtain approval/permission of the Reserve Bank of India and Ministry of Industry, Department of Industrial Policy and Promotion to enable Plansee to purchase existing shareholding of the assessee - assessee had relied upon the valuation report, which was accepted by the Reserve Bank of India, Exchange Control Department when they granted express permission - Revenue submitted that the valuation report was ambiguous and mentions that the Seil Tizit Ltd. was not a listed company and the market price was not available. On this basis it cannot be held that the consideration declared and paid was sham and not the correct amount, which was paid - valuers do not normally undertake the exercise and valuation are made accepting and on the basis of audited accounts - It was open for the AO to point out and state why and for what reason the figures in the books of account were false and incorrect and the data/information was unreliable and should not have been the basis of the valuation - valuation was undertaken, report made as was required to get requisite approval under the exchange control regulations - it cannot be assumed that underhand or undeclared sale consideration was paid No substantial question of law arises for consideration Decided against Revenue.
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