2015 (11) TMI 1215

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.... was preferred by the Assessee against an order dated 31st January, 2001 passed by the Commissioner of Income Tax (Appeals) [hereafter 'CIT(A)'] whereby the Assessee's appeal against the assessment order dated 31st March, 1992 in respect of the Assessment Year (AY) 1992-93, was dismissed. 2. The present appeal was admitted on 10th May, 2006 and the following questions of law were framed:- "1. Whether the I.T.A.T. was right in holding that the sale consideration received by the assessee by transfer of shares and sale of rights entitlement of partly convertible of partly convertible Debentures (PCDs) is income from capital gains and not income from business? 2. Whether the I.T.A.T. was right in holding that the As....

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....to 5 (five) PCDs for 4 (four) equity shares. 3.3 During the year in question the assessee company sold 50,000 equity shares of JSL and 141400 shares of M/s Saw Pipes Ltd which, according to the Assessee resulted in short term capital gains of Rs. 1,15,59,800/-. In addition, the Assessee declared income from business and profession of Rs. 57,02,340/-. 3.4 During the year, the Assessee also renounced its entitlement to subscribe 78000 PCDs of JSL to Gagan Trading Co. Ltd at the rate of Rs. 98/- per PCD and 1,36,750 PCDs of JISCO to Nalwa Investment limited at the rate of Rs. 30/- per PCD. Both the purchasers are a part of the Jindal Group. 3.5 According to the Assessee, the cum-right market price of each share of face value of Rs. 10....