|Question And Answer|
|Subject:||proceeds of Sale of shares of unquoted private limited company|
|Answered by:||Advocate Shashi Ashok Bekal|
|Tags:||Capital Gains, Unquoted shares|
|Date:||May 7, 2023|
ITO added back the entire sale proceeds of the equity shares of unlisted shares of a private limited company. Transaction made during FY 2013-14. Those shares were purchased at almost the same time of sale. A nominal gain arises and added in to other income.
Unless there is something to justify that the transaction is an accommodation or a bogus transaction, the Ld. AO cannot add the whole sales proceeds as income. The Ld. AO has to compute Capital Gains as per the scheme of the Act.