TMI Blog2014 (6) TMI 666X X X X Extracts X X X X X X X X Extracts X X X X ..... e authority to AO to replace the value i.e., the sale consideration, specific provision have been provided for - In the absence of specific provision, the AO cannot chose to replace the value – Relying upon ACIT Cir. 16(3) Mumbai Versus M/s. B. Arunkumar & Co. [2014 (6) TMI 462 - ITAT MUMBAI] - once it is found that shares are sold at a particular price it is not possible for the AO to disturb the figure without bringing any material facts contradictory to the calculation made by the assessee - the AO does not have power under the Income Tax Act to substitute fair market value for full value of consideration – CIT(A) was not justified in confirming the addition made by the AO – Decided in favour of Assessee. - ITA No. 861/Mum/2013 - - - D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the AO, the assessee had sold 1,00,000/- shares of ITL Industries Ltd. at Rs.21 which were valued at higher rate and hence he calculated the book value per share at the rate of Rs.4.51 for capital gains. The balance amount of Rs.16.49 per share had been assessed as income from other sources. On appeal, the Ld. CIT(A) upheld the action of the AO. Aggrieved by the impugned order the assessee is in appeal before us. 4. Having heard both the sides and perused the material on record it is pertinent to mention that the assessee for the purpose of acquiring controlling ITL Industries Ltd by ITL Embellishments i.e., the purchasers entered into the transaction of selling the shares. It is pertinent to mention that section 48 of the Act states t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the AO has power to substitute the value of consideration in place of sale consideration shown by the assessee for the purpose of computing the capital gain, has held that once it is found that shares are sold at a particular price it is not possible for the AO to disturb the figure without bringing any material facts contradictory to the calculation made by the assessee. Further, the Tribunal in the case of M/s. Morar Jee Textiles Ltd. in ITA No. 2077/Mum/2009, vide its order dated 10.05.2013, has held that the sale price of shares on the basis of book value cannot be taken into consideration for the purpose of determining the value of sale of shares in case of full value consideration is determinable. The Tribunal has further held that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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