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TMI Blog1978 (8) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the case, the Tribunal was right in holding that the cost price of 55,100 shares should be taken at Rs. 5,51,000 and not at Rs. 1,45,000 ? 2. Whether the Tribunal was right in holding that on the facts and in the circumstances of the case, the exchange of one security for another could be described as realisation of the security resulting in profit? " The statement of the case relates to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee also received such a circular letter from the new company. The assessee accepted the said offer and received 55,100 shares of the new company in exchange for the aforesaid holding of 14,500 shares in the other company. The face value of new shares was also at Rs. 10 per share. The assessee, however valued the new shares also at Rs. 1,45,000 being the cost price of the old shares. The ITO did ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as a dealer in shares as correctly stated by the authorities below. It was submitted that the profit in business under s. 145, of the Act depended upon the method of accounting regularly employed by the assessee and such profits must be ascertained on commercial principles. It was further argued that the aforesaid transaction did not amount to a sale and, therefore, there could not be any profit i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and dismissed this part of the appeal. Thereafter, the Tribunal rejected the application made by the assessee under s. 256(1) of the Act but a Division Bench of this court called for the aforesaid questions at the instance of the assessee. It has not been found by the Tribunal that the cost price of 55,100 shares should be taken at Rs. 5,51,000 and not at Rs. 1,45,000 in its appellate order a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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