Section 26 in The Finance Act, 2017
26. Insertion of new section 50CA.
- After section 50C of the Income-tax Act, the following section shall ... inserted with effect from the 1st day of April, 2018, namely:- `50CA. Special provision for full value of consideration for transfer of share other than
current transaction made in the ordinary course of business. [ Similar to Section 50CA from The Income
purposes of section 50CA, the fair market value of the share of a company other than a quoted share, shall be determined in the manner ... company other than a quoted share, referred to in section 50CA, is transferred
purpose
of computation of full value of consideration as provided for Section 50CA of the
Income-tax Act, 1961 ("the Act").
3. That ... higher of the actual sale consideration or FMV as
specified under Section 50CA of the Act.
4. That the AO erred in going beyond
against
addition made of Re. 12,92,000- under section 50CA of the
Income Tax Act, 1961 without appreciating the fact that ... 2024
valuation for the purpose of section 56(2)(x) and 50CA is the
Fair Market Value [FMV] which is derived as prescribed
method
submitted before the AO that section 50CA of the Act provides
that in a case where the consideration received or accruing as a result ... date of transfer of capital asset for the purpose of section 50CA of the
Act. Accordingly, the fair market value of equity shares
Rules, 1962 ("the Rules") and not as per Section 50CA,
vide Pr. Commissioner of Income Tax Vs. M/s Cinestaan
Entertainment ... seller) to a third party. specific provisions contained under Section
50CA r.w. Rule 11UAA determining full value of consideration of
unquoted shares, shall apply
after considering
the submissions of the assessee, invoked the provisions of section
50CA of the Act and made the addition for the differential amount ... value of consideration should
be in accordance with the provisions of section 50CA of the Act. Ld.
AR further submits that u/s 50CA
Rule
is applicable specifically in respect of determination of income u/s
50CA and 56(2)(viib) and has no application in Section ... chargeable to tax under the head "Capital Gains". Section 50CA provides
for considering the higher of the fair market value of unquoted shares
from 1st April 2017.
8.2 Similarly, the provisions as specified under section 50CA of the Act are
not applicable to the facts of the instant ... case. It is because the provision of
section 50CA of the Act does not speak about the quoted shares. Moreover,
the provisions of the section
