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2015 (5) TMI 551 - HC - Income TaxPreferential Equity Warrants - whether investment and not stock-in-trade and was not for business purpose? - Tribunal held that the loss on the forfeiture of application money for Preferential Equity Warrants was a capital loss and not a revenue loss - Held that:- ITAT have unanimously held that the loss was capital loss and not a revenue loss. It is this order which is under challenge. Thus it cannot be said by any stretch of imagination that the authorities took a view which is perverse. The authorities definitely took a possible view. Therefore, the first question is answered in the negative and against the assessee. Whether the loss suffered by the assessee is a capital loss or revenue loss - Held that:- An answer to the question shall depend upon a further question as to whether if the investment had resulted in profit, whether the profit would have been a capital gain or revenue gain. The answer, according to us, is that the profit would have been a capital gain. We are also supported in the aforesaid view by the judgment in the case of Madan Gopal Radhey Lal (1968 (9) TMI 14 - SUPREME Court ). Therefore, the loss suffered by the assessee is a capital loss as rightly held by the assessing officer, CIT (Appeal) and the learned Income Tax Appellate Tribunal. - Decided against the assessee.
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