9911796707
TMI Blog2003 (1) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... e profit and loss account and the computation tendered by the assessee before the Assessing Officer, which indicates that the old shares held as stock-in-trade were valued at cost and not at market price. Mr. R.V. Desai, learned senior counsel appearing on behalf of the Department, fairly conceded that the old shares were valued at cost and not at market price. - the appeal filed by the Department is dismissed. - - - - - Dated:- 22-1-2003 - Judge(s) : S. H. KAPADIA., J. P. DEVADHAR. JUDGMENT The judgment of the court was delivered by S.H. KAPADIA J.- Being aggrieved by the decision of the Tribunal, the Department has come by way of appeal under section 260A of the Income-tax Act, 1961. The appeal concerns assessment year 1990-91. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the old shares as stock-in-trade, the question of capital loss under section 45 did not arise. Being aggrieved by the decision of the Assessing Officer, the matter was carried in appeal before the Commissioner of Income-tax (Appeals). When the matter came before the Commissioner of Income-tax (Appeals), the assessee relied upon two judgments. In the case of Miss Dhun Dadabhoy Kapadia v. CIT [1967] 63 ITR 651, the Supreme Court was concerned with the question of valuation of new shares offered to a holder of old shares in a company with right to renounce. In that matter, the assessee had renounced the right and realised Rs. 45,262.50. This entire amount was sought to be taxed as capital gains to which the assessee objected on the ground th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee relied upon this judgment of the Bombay High Court which was not accepted by the Commissioner of Income-tax (Appeals) on the ground that in the case of K.A. Patch [1971] 81 ITR 413 (Bom), the shares were valued at market price and not a cost. Consequently, the Commissioner of Income-tax (Appeals) dismissed the appeal filed by the assessee. Being aggrieved, the assessee preferred appeal to the Tribunal, which took the view that in view of the aforestated two decisions, the assessee should succeed. Consequently, the Tribunal allowed the appeal. Being aggrieved, the Department has come by way of appeal under section 260A of the Income-tax Act to this court. Findings: In this case, as indicated by the facts mentioned hereinabove, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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