Land and Building

The assessee company declared a short term capital loss of Rs. 12,42,17,815/- on the sale of land and building. The Assessing Officer (AO) sought sale and purchase deeds related to the property transaction. The assessee submitted an unregistered Memorandum of Understanding (MoU) dated 04.11.2009 for transfer of property in exchange for allotment of equity shares at a premium. Additionally, a sale deed dated 17.11.2009 was submitted showing a sale consideration of Rs. 20,69,160/-. The AO, suspecting related party transactions and artificial inflation of property cost, rejected the MoU and relied on the sale deed, determining the sale consideration at Rs. 73,81,185 for stamp duty purposes. Consequently, the AO computed a short term capital gain of Rs. 53,12,025.

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