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TMI Blog2004 (8) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessee-company had earned capital gain of Rs. 23,072 on the acquisition of the shares of National Insurance Company Ltd., of the face value of Rs. 5,82,742 by the General Insurance Corporation of India Ltd., for Rs. 6,05,815 on the nationalisation of the general insurance business during the accounting period corresponding to the assessment year 1975-76?" The applicant company during the assessment year 1975-76 derived income from dividend amounting to Rs. 1,35,514 and had also received a sum of Rs. 11,760 as management compensation from National Insurance Company Ltd. The Income-tax Officer brought to tax both the aforesaid items a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicant before the Appellate Assistant Commissioner, it was contended by the applicant that it had received shares of M.P. Industries Limited whose value was only Rs. 6.52 per share in the market and, therefore, the applicant instead of making any capital gain has actually suffered loss of Rs. 1,27,761 which should have been allowed instead of taxing it as capital gains. The Appellate Assistant Commissioner did not accept the plea of the appellant and upheld the assessment. The appeal filed by the applicant before the Tribunal had also failed. We have heard Shri R.S. Agrawal, learned counsel for the appellant, and Shri Govind Krishna learned counsel appearing for the Revenue. Learned counsel for the appellant submitted that the applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s compensation and if instead of receiving the amount, the applicant had preferred to have shares of M.P. Industries Limited, the applicant is not justified in claiming capital loss by treating the market value of the share of M.P. Industries at Rs. 6.52. Having heard learned counsel for the parties, we find that all the authorities including the Tribunal has found as a matter of fact that the only business which the applicant was carrying on was that of working as a sole selling agent of J.K. Iron and Steel Company Limited which was terminated from July 31,1968. It could not start any other business till the Tribunal decided the appeal giving rise to the present reference. The Tribunal was of the view that the purpose of temporary lull ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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