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2019 (12) TMI 1198 - AT - Income TaxLong term capital gain or short term capital gain - period of holding - characterization of shares held by assessee in Scorpio beverages private limited whether long-term capital asset or a short-term capital asset - HELD THAT:- Following the decision of the coordinate bench in the case of Mr. Analjit Singh [2017 (12) TMI 306 - ITAT DELHI] we also hold that the gain on transfer of shares of Scorpio beverages P Ltd would be taxable as ‘long-term capital gains' and not ‘short-term capital gains' as assessee has held those shares for more than 12 months. Thus, ground number 4 – 8 of the appeal of the assessee is allowed to above extent. Sales consideration received accrued to the assessee - HELD THAT:- on one side, preference share capital invested has been considered in the investment in total asset of that company whereas preferential capital issued by the company has not been included in the liability. This resulted in to including that value twice in the valuation of equity shares of that company. Therefore, there is an apparent misinterpretation of the financial statements of the subsidiaries. Therefore, the learned assessing officer is directed to correct the valuation of above five companies by including the value of preference share capital issued by these companies in the total liabilities. Such total liability is to be reduced from total assets of those companies to derive at the value of equity shares. Further, the Assessing Officer is also directed to verify all other figures from the audited balance sheets of all these companies as submitted by assessee and correct it, if it is found that they have been wrongly plotted, compute the value accordingly. Assessee is directed to put before AO such errors and which shall be rectified, if found in order. Capitalization of interest expenditure - HELD THAT:- Cordinate bench has dealt with this issue in case of husband of appellant thus we dismiss ground of the appeal and confirm the orders of the lower authorities in not allowing the capitalization of interest cost of INR 1 00902358/– as part of the cost of acquisition while calculating capital gain on sale of shares of Scorpio beverages private limited. Allowance of brought forward long-term capital loss brought forward from assessment year 2011 – 12 - HELD THAT:- Above loss was inadvertently claimed by the assessee at INR 2 49822064. Even in the grounds of appeal mentioned the assessee in ground number 23 has mentioned an astronomical figure, which is not the correct fact. Despite this assessee may be granted the brought forward long-term capital loss of INR 2 4982206/– if found in accordance with the law. Similar is the ground number 26 of the appeal where the claim of the assessee is about set off the brought forward long-term capital loss of INR 15336932/– for assessment year 2011 – 12. Assessee is directed to file requisite details before the assessing officer and the AO may examine the same and grant set off of the brought forward long-term capital losses, if found in accordance with the law Grant of credit for tax deduction at source and advance tax - HELD THAT:- CIT – A has correctly held that if the above amount has been shown in form number 26AS, then AO is directed to grant the credit for tax deduction at source and advance tax paid. No infirmity can be found in such a direction given by the learned CIT – A. Assessee is further directed to submit the requisite details before the learned assessing officer about the tax deduction at source as well as the advance tax paid and reconcile the same with form number 26AS. AO may verify the same and grant credit for the same in accordance with the law. Accordingly, ground number 29 of the appeal of the assessee is allowed with above direction.
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