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| The Tax Publishers2020 TaxPub(DT) 2884 (Mum-Trib) INCOME TAX ACT, 1961
Section 70
Where assessee claimed that loss on sale of shares was required to be allowed and set-off against capital gains on sale of land and AO took the view that since land was sold subsequent to sale of shares hence, book value of shares would be higher and accordingly, entire transactions, i.e., transaction on sale of land and sale of shares could not be construed as composite transactions matter was remanded back to AO to consider various documents in the form of shareholders agreement, agreement of Banakhat, etc., before AO which were not discussed by AO in his order.
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Loss - Business loss - Assessee claimed that loss on sale of shares was required to be allowed and set-off against capital gains on sale of land - AO rejected assessee's claim without considering documents furnished by assessee
Assessee entered into composite transactions arising from the inter se agreement between certain parties including assessee which mentioned about sale of shares and transfer of land between the same parties and so documented in the inter se agreement and shareholders agreement. Hence, assessee claimed that loss on sale of shares was required to be allowed and set-off against capital gains on sale of land. AO took the view that since land was sold subsequent to sale of shares hence, book value of shares would be higher and accordingly, entire transactions, i.e., transaction on sale of land and sale of shares could not be construed as composite transactions. Held: Assessee filed various documents in the form of shareholders agreement, agreement of Banakhat, etc., before AO which were not discussed by AO in his order for arriving at a conclusion that loss of shares on sale was not allowable. All these documents would assist in proper decision making process of the issue involved. Accordingly, issue was remanded to AO.
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2012-13
INCOME TAX ACT, 1961
Section 115JB
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