As \u00a0regarding the valuation of long-term capital loss claimed on the sale of shares. The ITAT agreed with the AO\u2019s findings that the assessee sold shares at a drastically undervalued price despite the recent valuations showing much higher values. The related-party transactions, including the sale of a valuable property to assessee\u2019s wife were done at a lower price. \u00a0However, it found that the AO\u2019s computation method was not in line with Rule 11UA . The ITAT remanded the matter to the AO to recalculate capital gains based on the most credible valuation evidence available. (ITA Nos\u00a0 1824 \/1825 \/1826 \/Chy\/2024 dt. 30 -5 -2025 )( AY. 2013-14 , 2014 -15 , 2019-20 )<\/p>\n
\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 56: Income from other sources \u2013 Long term capital loss -Share transfer agreement – Shares sold at an undervalued price \u2013 Related party transaction \u2013 AO claimed that the transaction was structured to avoid tax \u2013 Shares valued at upwards of Rs 19000 , per share were sold for Rs 100 per share – Valuation was not in accordance with Rule 11UA \u2013 Matter remanded back to AO for recalculating capital gains. [ S. 45 ,56(2)(vii)(b), 56(2)(x), R.11UA(1)(c)(v) ] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-54903","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-ehx","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/54903","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=54903"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/54903\/revisions"}],"predecessor-version":[{"id":54904,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/54903\/revisions\/54904"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=54903"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=54903"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=54903"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}