THE INDRA COMPANY LIMITED(AS SAUMYA TRADE & FISCAL SERVICES P. LTD. MERGED INTO THE INDRA CO. LTD.),KOLKATA vs. I.T.O., WARD - 12(3),, KOLKATA

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ITA 2038/KOL/2024Status: DisposedITAT Kolkata29 May 2025AY 2016-201720 pages
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What did the Tribunal hold?

The Tribunal held that the consideration for the transfer of a capital asset is what the transferor receives, not its market value. Therefore, the full value of consideration received should be used for computing capital gains/loss, and indexation should be allowed on the accepted cost of acquisition.

What were the facts?

The assessee sold shares of Shree Rama Newsprint Ltd. for Rs. 2,529, claiming a long-term capital loss of Rs. 5,98,62,950. The Assessing Officer (AO) disallowed this loss, finding the sale price illogical compared to the market price and the acquisition cost. The AO suspected collusive transactions to create losses for set-off.

What were the issues?

Whether the 'full value of consideration' under Section 48 refers to the actual amount received or the market value, and whether indexation should be allowed on the cost of acquisition when computing capital loss.

Which sections of the Income-tax Act were involved?

Section 48,Section 143(3),Section 250

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Income Tax Appellate Tribunal, KOLKATA ‘B BENCH, KOLKATA

Before: SONJOY SARMA & SRI RAKESH MISHRA

order

: 29-May-2025 ORDER

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

1.

This appeal filed by the assessee is against the order of the Ld. Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as “the Ld. CIT(A)”] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2016-17 dated Order pronounced in the open Court on 29th May, 2025. Sd/- Sd/- [Sonjoy Sarma] [Rakesh Mishra] Judicial Member Accountant Member Dated: 29.05.2025 Bidhan (P.S.)

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