TMI Blog2011 (9) TMI 1010X X X X Extracts X X X X X X X X Extracts X X X X ..... ate and in fact at a better price than the Allure Investments and Finance Pvt. Ltd. The assessee sold the shares at Re.0.79 per share while Allure Investments & Finance Pvt. Ltd. had sold the shares at Re.0.26 which was held to be reasonable by the ITAT. In view of the above, we respectfully following the above decision of the ITAT direct the AO to accept the loss as disclosed by the assessee. - ITA No. 3474/Ahd/2010 - - - Dated:- 9-9-2011 - D. K. Tyagi (Judicial Member) And G. D. Agarwal (Vice-President) For the Petitioner : Jaimin Gandhi For the Respondent : Samir Tekriwal ORDER G. D. Agarwal (Vice-President) This is assessee s appeal against the order of the Commissioner of Income-tax (Appeals)-I, Baroda dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee s contention with the following findings: 7. We have considered the rival submissions, perused the material on record and have gone through the orders of the authorities below as well as the judgments cited by both the sides. We find that as per section 48, capital gain has to be worked out after reducing the cost of acquisition of capital asset along with cost of improvement thereto and the expenses incurred on transfer of a capital asset from full value of the consideration received or accruing as a result of the transfer of the capital asset. There is no reference to the market value of the capital asset transferred in section 48 or in any other section except section 50C, which is applicable only in case of sale of landed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n present case, it is quoted share. As per the ratio laid down by Hon ble Gujarat High Court, capital gain has to be computed on the basis of consideration accruing or received for transfer of capital asset and for that purpose, no reference is required to be made to the market value of the asset in question because there is no provision in section 48 of the Act. In that judgment, reference has been made to section 45(2) also where it is specified that market value of the asset in question has to be considered where there is conversion by the owner of the capital asset into stock in trade but it was held that provision of section 45(2) are not applicable in the case of sale of capital asset and the same is applicable where there is conversi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he shares in physical form to the related party whereas the shares traded at Bombay Stock Exchange were demat shares and if the assessee wants to sale the shares at a Stock Exchange, it has got the shares dematerialized which will require time and will also have its cost and moreover, the quantity of shares traded in the stock exchange in various months of the financial year at various dates in the month of March,2004 or in February,2004 was 100 shares on some dates, 200 shares on some dates, 300 shares on some dates and 1100 shares on one date only whereas the quantity of shares sold by the assessee is 3,32,940 shares. It was submitted that it cannot be said that the price charged by the assessee was unreasonably low in the facts of the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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