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2019 (2) TMI 1577 - AT - Income TaxDisallowance of loss under the head “capital gains” - chargeability of the capital gains - sale of shares of SQL Star International Limited, being long-term capital asset - addition on the ground that the transaction of sale of such shares is not genuine - HELD THAT:- As already concluded that the sale took place in the impugned AY itself, the impugned transaction, in terms of charging Section 48, were chargeable to tax in impugned AY only irrespective of the fact that sale consideration was actually received by the assessee or merely accrued to the assessee in impugned AY. The chargeability of the capital gains, in our opinion, was not dependent upon factum of actual receipt of sale consideration by the assessee and therefore, the stand of lower authorities, in this regard, could not be sustained. So far as the valuation of shares is concerned, it is notable that the SQL was a listed entity whose trading was suspended from BSE during the month of December, 2013 when the last traded price of the Share was ₹ 1.08 per share - the said entity was loss making entity and there was no ready buyer of its share upon its suspension from trading on stock exchange. The price of listed shares, in our opinion, are governed more by demand-supply factors and therefore, the sale consideration could not be rejected by revenue merely by suspecting the same without bringing on record any material to corroborate the fact that the price of the shares at relevant time was on the higher side. We are of the considered opinion that the stand of first appellate authority in rejecting the assessee’s Long Term Capital Loss could not be sustained. - Decided in favour of assessee.
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