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2023 (8) TMI 1410 - AT - Income TaxCapital loss/gain determination - FMV determination - additional investments by purchasing shares from the subsidiary company - A.R submitted that barring sec.50CA, there is no other provision in the Act, by virtue of which the AO could substitute ‘Full value of consideration’ declared by the assessee, thus AO was not justified in adopting the sale consideration of shares at Rs.14,361/- per share and Ld DRP was not justified in confirming the same - AO has disbelieved the sale consideration determined on 30-11-2017, by way of an agreement entered with the buyer at a price of Rs.7,094/- per share, only for the reason that the assessee had purchased the very same shares at price of Rs.14,351/- prior to about one month only - HELD THAT:- The Full value of consideration received by the assessee is Rs.7,094/- per share, while the value of share arrived under Net Asset Value method was (-)Rs.630.29. Since the full value of consideration received by the assessee is more than the FMV, there is no reason to tinker with the full value of consideration declared by the assessee. We notice that the AO did not accept the FMV computed under Rule 11UAA of Income tax Rules for the reasons that (a) the value under Net Asset value method has been arrived at by considering the Balance Sheet as on 31.3.2017, while it should have been computed on the basis of Balance Sheet as on 30-11-2017, i.e., the date of transfer. (b) the value under DCF method has been arrived at by the valuer on the basis of information provided by the management, which is not supported by any cogent material. Accordingly, in the facts and circumstances of the case, we are of the view that the AO was not legally justified in tinkering with the Full value of consideration declared by the assessee and accordingly arriving at long term capital gains and short term capital gains. Accordingly, we set aside the order passed by the AO on this issue and direct him to accept the full value of consideration declared by the assessee and accordingly compute the capital gains/loss. Decided in favour of assessee.
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