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2010 (1) TMI 291 - SC - Income TaxCapital Gain- whether Rs. 2,43,750 was a short-term capital loss, as contended on behalf of the assessee(s), or whether the said loss was a long-term loss, as contended on behalf of the Revenue. assessee was a shareholder in Jindal Iron and Steel Company Limited (“JISCO”, for short). The said company announced in January, 1992, an issue of 12.5 per cent. equity secured PCDs (partly convertible debentures) of Rs. 110 for cash at par to shareholders on rights basis and employees on equitable basis. The issue opened for subscription on February 14, 1992, and closed on March 12, 1992. As the assessee held 1500 equity shares of JISCO, the assessee received an offer to subscribe to 1875 PCDs of JISCO on rights basis. The assessee renounced his right to subscribe to the PCDs in favour of Colorado Trading Company on February 15, 1992, at the rate of Rs. 30 per right. The assessee received, accordingly, Rs. 56,250 for renunciation of the right to subscribe to the PCDs. Held that- the loss computed by the assessee was correct.
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