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2008 (1) TMI 580 - HC - Income TaxCapital gain- The assessee-company sold certain shares of Suhrid Geigy Ltd., which had been acquired on January 1, 1974 to Koshalya P. Ltd. which was a wholly owned subsidiary company of the assessee. Similarly, the assessee had also sold certain shares of Wadi Chemicals P. Ltd. which had been acquired on July 1, 1977, to another wholly owned subsidiary company. The assessee worked out capital gains and claimed the said capital gains to be wholly exempt from tax under section 47(iv) of the Act. The claim of the assessee was negatived by the Officer on the ground that the assessee had been carrying on the business of purchasing and selling shares. The assessee carried the matter in appeal before the Commissioner of Income-tax (Appeals) who dismissed the appeal. Tribunal deleted the addition on the ground as in the earlier assessment year profit and loss were treated as capital gain. Held that- since on similar issue concluded in favour of the assessee and there was nothing on record to suggest that the order in that case had been challenged further. Thus the Tribunal was justified.
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