BIGSTAR HOTELS RESORTS PVT. LTD.,NEW DELHI vs. ITO WARD 5(1), NEW DELHI

ITA 3351/DEL/2024Status: DisposedITAT Delhi25 July 2025AY 2020-2117 pages
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What did the Tribunal hold?

The Tribunal held that the AO and CIT(A) erred in valuing the shares at book value instead of considering the stamp duty value for immovable properties as per Rule 11UA(1)(c)(b) for determining the Fair Market Value (FMV) at the time of sale. The Tribunal found the assessee's valuation, supported by a merchant banker's report, to be in accordance with the law.

What were the facts?

The assessee sold shares of M/s. Apex Homes Pvt. Ltd. at a price significantly lower than its purchase price, claiming substantial capital losses. The Assessing Officer (AO), disagreeing with the assessee's valuation, re-valued the shares and computed capital gains, making an addition to the income.

What were the issues?

The primary issue was the correct method of determining the Fair Market Value (FMV) of unquoted equity shares for the purpose of computing capital gains, specifically concerning the valuation of underlying immovable properties.

Which sections of the Income-tax Act were involved?

Section 50CA

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Income Tax Appellate Tribunal, DELHI A BENCH: NEW DELHI

Before: SHRI YOGESH KUMAR U.S & SHRI MANISH AGARWAL

PER MANISH AGARWAL, AM : Shri Mahesh Kumar, CA, Ms. Meenal Goyal, CA & Ms. Vidhi Mahajan, Adv.

Shri Ajay Kumar Arora, Sr.DR 07.07.2025 25.07.2025 The present appeal is filed by the assessee against the order dated 09.07.2024 passed by Ld. Commissioner of Income Tax (A), National Faceless Appeal Centre (“NFAC”), Delhi [“Ld.CIT(A)”] in Appeal No.NFAC/2019-20/10183384 passed u/s 250 of the Income Tax Act, 1961 [“the Act"] arising from the assessment order dated 29.09.2022 passed u/s 143(3) r.w.s 144B of the Act pertaining to assessment year 2020-21. 2. Brief facts of the case are that the assessee is a company, engaged in the business of repair and maintenance services and filed its return of income on 02.02.2021, declaring t

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