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2006 (9) TMI 131 - HC - Income TaxCapital loss and penal interest - Appellant, a non-resident held some 40,50,000 shares of an Indian company – it transferred this entire lot of shares and claimed the capital loss - This claim of the appellant has been disallowed - according to the Revenue the appellant was not entitled to indexation under section 48 of the Income-tax Act, 1961 ("the said Act" for short) and, therefore, was not eligible to rely on section 55(2)(b)(i) to adopt the fair market value of shares - For not paying the advance tax in time as claimed by the Department, penal interest u/s 234B has been levied – held that Tribunal is expected to decide the liability of the appellant independent of section 48 – further, Tribunal is expected to discuss as to how there was delay in not paying the advance tax in time and if so, whether penal interest could be charged on to the appellant - Inasmuch as there is no appropriate discussion on both these aspects, we revive the appeal to the file of the Tribunal for determination on both these aspects.
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