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TMI Blog2015 (11) TMI 1284X X X X Extracts X X X X X X X X Extracts X X X X ..... n appeal preferred by the Assessee against a common order dated 3rd October, 2000 passed by the Commissioner of Income Tax (Appeals) [hereafter 'CIT(A)'], inter alia, rejecting the Assessee's appeal against the assessment order dated 29th July, 1994 relating to the assessment year (hereafter 'AY') 1992-93. ITA No. 314/Del/2001 related to another Assessee namely M/s Nalwa Investments Ltd. and the common order passed by the ITAT insofar as it relates to the said appeal is not a subject matter of the present appeal. 2. This Appeal was admitted on 12th October, 2004 and the following questions of law were framed:- "1. Whether the Income Tax Appellate Tribunal was right in holding that the sale consideration received by the assessee by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale of certain shares held by it in other companies which the Assessee claimed to be capital assets. The Assessee had also claimed loss on account of renunciation of rights to subscribe to PCDs. 3.3 At the material time, the Assessee was one of the shareholders of Jindal Strips Limited (hereafter 'JSL'). The Assessee reflected the shares held in JSL as stock-in-trade and had valued the same at cost or market price whichever was less. According to the Assessee, its board of directors decided to retain the shares on a long term basis and consequently passed a resolution on 4th April, 1991 that all shares held by it should be treated as investment/capital asset. 3.4 During the financial year relevant to AY 1992-93, JSL announced a rights i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pany belonging to the Jindal Group. Admittedly, the cost of acquisition of shares of JSL on the basis of which the Assessee was entitled to subscribe to PCDs were acquired at the price much below Rs. 98/-. Nonetheless, the Assessee claimed a loss of Rs. 42/- per PCD on the transaction. This was computed by taking the cost of acquisition of the rights to subscribe to PCDs as a diminution in the quoted value of JSL shares; JSL shares were quoted at a cum-right price of Rs. 615/- as on 20th December, 1991 and an ex-right price of Rs. 475/- as on 24th December, 1991. It appears that the Assessee had claimed the said loss at Rs. 2,16,23,980/- (two crores sixteen lacs twenty three thousand nine hundred eighty). The Revenue, in its appeal, has men ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion and a device to avoid payment of tax. 6. The present appeal was heard alongwith Commissioner of Income Tax Delhi-I v. M/s Abhinandan Investment Ltd.: ITA No.130/2001 and the questions of law framed in present the appeal and in ITA 130/2001 were also common. Further, the learned counsel for the parties contended that the material facts and issues in the present appeal were similar to the issues involved in ITA 130/2001 and a decision in ITA 130/2001 would also be determinative of the questions in the present appeal. 7. Thus, in view of our decision in Commissioner of Income Tax Delhi-I v. M/s Abhinandan Investment Ltd.: ITA 130/2001 delivered today, the questions of law are answered in favour of the Revenue and against the Assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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