A private Ltd company (say A Co.) purchases/ subscribes for shares of another company (say B Co.) at a premium (the company whose shares are subscribed is not a listed company). Can the tax authorities question the cost of acquistion of A Co. when it sells the shares which are acquired from B Co.
Is there any judgement which says that the tax authorities cannot question the cost of acquisition.
Mr.Shreeram.M.Deshpande
If the Assessing officer questions the cost of acquisition, it is the responsibility of the assessee to proove his claim. It is a common point. No case law is required.
Best Wishes
Sathikonda
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