2013 (7) TMI 545

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....short, hereinafter referred to as "the Act"), was completed on March 28, 1997, on the basis of the return of income filed on November 28, 1996, declaring the loss of Rs. 34,60,75,700 which included a sum of Rs. 5,98,50,000 being long-term capital loss. The assessee's case is that this capital loss is incurred on extinguishment of rights on warrants of M/s. Birla VXL Ind. The said capital loss was accepted in the scrutiny assessment and, accordingly, the assessment order was passed. Subsequently, the loss claimed as "longterm capital loss" was found to be incorrect and not in accordance with law, as there was no transfer of any capital asset as defined under the Income-tax Act, 1961. The loss incurred is in respect of the subscription money ....

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....ribunal which has upheld the order of the appellate authority. It is against these two orders, the Revenue is in appeal. Learned counsel for the Revenue assailing the impugned order contends that the amount claiming as long-term capital loss is the amount paid by the assessee for purchase of shares. Only share warrant has been issued and no asset in law had been acquired and, therefore, any loss sustained in the transaction would not constitute a long-term capital loss. Though in the original proceedings, this amount was mentioned and claimed as particulars had not been furnished, the Revenue was unable to apply its mind and record its finding. It is the case of the assessee that there was no failure on their part to disclose fully and t....