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2017 (9) TMI 512 - AT - Income TaxRevision u/s 263 - loan related to WIP was not considered while calculating the short term capital loss - tax neutral exercise - Held that:- Sale consideration in table no 1 is taken at ₹ 4 crores against the cost of net asset(WIP) of ₹ 37,15,08,970/- which was calculated after deducting the payments towards loan of ₹ 32 crores. Whereas in the second table-2, the sale consideration was taken at ₹ 36,00,00,000/- against the cost of net asset of ₹ 69,15,08,970/- which was before payment towards discharge of loan of ₹ 32 crores. In this case, the short term capital loss was worked out to ₹ 32,64,08,970/- It is amply clear from the two tables hereinabove tha the whole exercise as proposed by the Commissioner under proceedings u/s 263 is tax neutral as no tax evasion is caused by the assessee resulting into any prejudicial to the interest of the revenue. In one case, the assessee has not considered the payment towards loan and taken net consideration and capital gain was worked out by taking the net asset after reduction of loan. Whereas in the second case as proposed by the CIT if the gross amount of consideration is taken the corresponding reduction is not made of the loan from the fixed assets and therefore, the net result is same as calculated by the assessee. In view of this facts, we are of the considered opinion that the one of the condition that prejudicial to the interest of revenue is missing in the present case, and therefore proceedings under section 263 is quashed. - Decided in favour of assessee.
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