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2015 (10) TMI 1384 - AT - Income TaxLong-term capital loss (LTCL) arising on sale of shares allowed by CIT(A) - Held that:- It is an undisputed fact that the assessee had sold the shares of Suvik Hitech P. Ltd. which is a private limited company and is not listed on the stock exchange. The Commissioner of Income-tax (Appeals) while granting the relief has given a finding that the shares were transferred to the Hindu undivided family of the assessee's father which is a separate legal entity and the consideration of the same was received by the assessee from the said Hindu undivided family through banking channels. He has also noted that the shares were sold at a price which were on the basis of a report of the Government approved valuer. The Commissioner of Income-tax (Appeals) has further given a finding that the decision in the case of McDowell and Co. Ltd. (1985 (4) TMI 64 - SUPREME Court) and the other case laws were not applicable to the facts of the case. He thus relying on the decision of the hon'ble apex court in the case of Union of India v. Azadi Bachao Andolan [2003 (10) TMI 5 - SUPREME Court ] held that the transaction of sale of shares in the present case cannot be considered as a sham or a device to void tax. Before us, the learned Departmental representative could not controvert the findings of the Commissioner of Income-tax (Appeals) by bringing any contrary material on record. In view of the aforesaid facts, we find no reason to interfere with the order of the Commissioner of Income-tax (Appeals) and thus this ground of the Revenue is dismissed. - Decided in favour of assessee.
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