1993 (2) TMI 50

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..... n Civil Appeal No. 939(MT) of 1978 dated May 1, 1978, the Tribunal has drawn up a statement of the case and referred the following question to this court : "Whether, on the facts and in the circumstances of the case, the sum of Rs. 81,755 was allowable as a short-term capital loss?" The assessee is a private limited company and carries on the business of manufacture and sale of radiators, heat e .....

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..... exported machinery valued at Rs. 9,49,230 to the Singapore company, in the next year. In the process of purchasing machinery and exporting the same to the Singapore company, the assessee suffered a loss of Rs. 81,755 as under: Rs. P. Total purchases 12,73,516.32 Less : Sales 9,49,212.98 ----------------------- 3,24,303.34 Less : Stock of machinery for export 1,38,368.00 -------------- .....

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..... y argued that, since the assessee had purchased capital assets which were transferred to the Singapore company in exchange for equity shares worth Rs. 12,80,000, the loss suffered by the assessee was a short-term capital loss and should have been allowed as such by the income-tax authorities as well as the Tribunal. In this connection, he invited our attention to the definition of the word "transf .....

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..... evenue, on the other hand, supported the action of the income-tax authorities as well as the Tribunal. In this connection, he read out certain portions of the order of the Tribunal to impress upon us that the loss suffered by the assessee cannot be treated as a short-term capital loss. According to him, the assessee has transferred nothing to the Singapore company as, under the approval of the Gov .....

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..... that there was a transfer of a capital asset by the assessee to the Singapore company and, in the process of the transfer of the said capital asset, the assessee had suffered a loss of Rs. 81,755 as worked out above. In this view of the matter, we answer the question which is before us in the affirmative and in favour of the assessee. No order as to costs.
Case laws, Decisions, Judgements, Or .....

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