1992 (9) TMI 3 - SC - Income Tax

Whether the Tribunal was right in holding that the Income-tax Officer was not justified in invoking the provisions of section 52(2) of the Income-tax Act 1961 - Whether the Tribunal was right in holding that the Income-tax Officer was not justified in disallowing the loss of Rs. 50, 724 claimed by the assessee and in making an addition of Rs. 1, 21, 276 as short term capital gain on the basis of break up value of the shares on the date of transfer as the market value of shares

Summary

The Supreme Court dismissed the Department's appeal against the High Court's order, which refused to direct the Income-tax Appellate Tribunal to state the case. The Tribunal's decision was based on the finding that section 52(2) of the Income-tax Act did not apply as the consideration for the transfer of a capital asset was not understated. The court referred to the decision in K P. Varghese v. ITO [1981] 131 ITR 597 to support its conclusion. The appeal was dismissed with no costs.