Share warrants as capital assets: settled precedent meant no substantial question of law arose in the Revenue appeal.

Share warrants were treated as a capital asset under the Income-tax Act, 1961, because the Tribunal followed binding precedent on that point. On that settled legal position, deletion of the disallowance of short-term capital loss arising from forfeiture of share warrants did not raise any substantial question of law in the Revenue's Section 260A appeal, so the appeal was dismissed.

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Issues: Whether share warrants could be treated as a capital asset under the Income-tax Act, 1961, and whether deletion of the disallowance of short-term capital loss arising on forfeiture of share warrants gave rise to any substantial question of law.

Analysis: The Tribunal had followed binding precedent which had held that a share warrant is a capital asset. In view of that settled position, no substantial question of law arose for consideration in the Revenue's appeal under Section 260A.

Conclusion: The appeal failed and was dismissed.

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