15 December 2008
A pvt ltd. co sold some shares of another co. at par.No profit or loss has been accounted for as both purchase and sale were at par and the carrying cost of such shares in the balance sheet is also at par say Rs.10/-.But at the time of assessment the assessing officer accounted for the difference between the intrinsic value and par value as Income benefit u/s.28(iv) of the act.According to A.O. assessee is engaged in the business of share trading and investment,hence by dealing in shares below its actual worth, the assessee is in receipt of benefit in real terms.Is the A.O's contention right? Can I get any case law in support of the assessee and against the A.O.?
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