The Tax Publishers2019 TaxPub(DT) 3068 (Del-HC) : (2019) 308 CTR 0050

INCOME TAX ACT, 1961

Section 45

Where the company whose shares were held by assessee, had meager resources and in fact, reported consistent losses, the assessee's claim for long-term capital gain which arose on account of sale of shares of such company was rightly rejected by Revenue.

Capital gains - Long-term capital gains - Sale of shares -

Revenue rejected assessee's claim for long-term capital gain arose on account of sale of shares of a company 'K'. Assessee contended that he was denied the right to cross-examination of two individuals whose statements led to the inquiry and ultimate disallowance of his claim of long-term capital gain. Held: It was found that company 'K' had meager resources and in fact, reported consistent losses. In such circumstances, the astronomical growth of the value of company's shares naturally excited the suspicions of the Revenue. It was even directed that the company be delisted from the stock exchange. Therefore, the findings of Revenue were entirely of fact and hence, the subject appeal filed by assessee was dismissed.

REFERRED :

FAVOUR : Against the assessee

A.Y. :



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