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2016 (1) TMI 1081 - AT - Income TaxAddition as Long Term Capital Gain - Held that:- A perusal of the agreements would show that nowhere in the agreement it has been stated that the consideration paid by M/s. DEN Network is in respect of the three components as stated by assessee, and no such bifurcation has been given in any of the agreements placed on record by the assessee. On the contrary a perusal of Share Purchase Agreement would show that M/s. DEN Network has purchased 10 equity shares of M/s. Manoranjan Satellite Pvt. Ltd. at a premium of ₹ 2,49,900/- per share. Thus, the intrinsic value calculated by the assessee for determining the value of shares of the said company for transfer on the same date does not hold ground. If the cost of shares at which M/s. DEN Network purchased the shares of M/s. Manoranjan Satellite Pvt. Ltd. is applied to the shares transferred by the assessee, it would give more realistic results 25,00,000/10 x 253 = ₹ 6,32,50,000/-. In so far as the payment towards transfer of fixed asset is concerned, a perusal of asset transfer agreement at pages 32 to 35 of the paper book would show that the assessee had transferred the assets of the proprietorship firm to M/s. Manoranjan Satellite Pvt. Ltd. for a consideration of ₹ 9 lacs in compliance of the JV agreement. Thus, the consideration received by assessee on transfer of shares from M/s. DEN Network does not include consideration for transfer of assets. After thoroughly examining the documents on record, we are not convinced with the arguments of the ld. AR of the assessee on the bifurcation of consideration or that the assessee is not liable for Long Term Capital Gain on transfer of shares in the impugned assessment year. In our considered view that the assessee has rightly disclosed in principle the Long Term Capital Gain from sale of share in the impugned assessment year (subject to the computation of correct amount of Long Term Capital Gain). - Decided against assessee
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