Held that the sale of shares to independent parties based on the valuation report, the rejection of valuation report by the AO is not proper. Tribunal also held that full value of consideration could not be substituted with the fair market value. Section 50CA was introduced by the Finance Act, 2017 with effect only from assessment year 2018-19 and did not apply to the year in question. As regards difference between income returned and that reflected in Form 26AS the Assessing Officer is directed to verify and reconcile. (AY.2014-15)
Smart Information Worldwide Inc. v. Dy. CIT (IT) (2024)114 ITR 33 (SN)(Chennai)(Trib)
S. 45 : Capital gains-Sale of shares-Mode of Computation-Non-Resident corporate entity-Sale of shares to another shareholder-Independent parties-Valuation report-Disregarding agreement value between assessee and other shareholder is not justified Section 50CA which was introduced by Finance Act, 2017 with effect from 2018-19 is inapplicable to year in question-Addition is not valid-Difference between income returned and that reflected in Form 26AS-Assessing Officer is directed to verify and reconcile. [S. 48, 50CA]
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