9911796707
TMI Blog1997 (3) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the order of the Income-tax Appellate Tribunal, Cochin Bench, in I. T. A. No. 66 (Coch) of 1993. The relevant assessment year is 1981-82. The following is the question referred for the opinion of this court : "Whether, on the facts and in the circumstances of the case, was the Tribunal right in law and in facts in holding that the amount of notional interest brought to tax by the Assessing O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 10 each in the capital of the debtor company and the shares were subsequently sold on February 16, 1983, at a loss. Such loss amounted to Rs. 1,72,219. The Tribunal, in its order for the assessment year 1983-84, held that the loss was in the capital field for the reason that when the outstanding were converted into shares what was a current asset was converted into a capital investment and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... put forward by the assessee was therefore rejected by the Tribunal. We do not find any merit in the contention raised by the assessee. The moment the amount of debt was utilised for the purpose of acquiring shares of the debtor company, thereafter, there was no question of any notional interest due on the amount of advance or debt as the case may be. We are of the view that the Tribunal was full ..... X X X X Extracts X X X X X X X X Extracts X X X X
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