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2012 (3) TMI 79 - MADRAS HIGH COURTWhether pending allotment of NCSD would qualify as "commodities" u/s 43(5) – whether its sale is Speculative transaction or Capital loss - PCD issued to existing shareholders – entitlement to get equity shares and NCD – under finance scheme bank offered to pay for portion of PCD and buy NCD portion at discounted price – assessee accounted for difference in price of NCD and price paid by bank as capital loss – Revenue contending it to be speculative transaction as no delivery is effected - Held that:- In present case, it was only NCSD, which is part of the PCD allotted in favour of the existing shareholder and then transferred to the bank, because the amount paid by the bank was treated as a loan to the existing shareholders and the said loan is treated as satisfied by issue of the NCSD to the bank.Therefore, the Tribunal has correctly held that there is an actual delivery and constructive delivery and they will not come within the purview of the "speculative transaction". Further, NCSD cannot be purchased or sold before allotment. Hence, pending allotment, non-convertible portion does not exist as such as commodities – Decided against the revenue.
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