Wednesday 2 October 2013

S.28(i): Business loss–Share transactions–Loss on sale of shares transaction is to be set off against profit.


 

The assessee sold three sets of shares, realized profit from one while loss from others. The Assessing

Officer held that loss was intentional to set off gain and found that shares were not quoted shares and

valuation of shares both at time of purchase as well as at time of sale of said shares was made on net

worth basis which had not been challenged by Revenue. Further, the Revenue was unable to produce any evidence to dispel credibility of the prices. Held, the prices arrived at on basis of net worth would have to be accepted and, thus, no addition could be made as transactions would be in order. (A.Y.2005-06)

CIT v. Bhushan Capital & Credits Services (P.) Ltd. (2013) 216 Taxman 94 (Mag.)(Delhi)(HC)

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