1993 (2) TMI 50

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....r the direction of the Supreme Court in 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....

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....73,560 during the relevant previous year and 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 ....

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....l as by the Tribunal. Learned counsel for the assessee strongly 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 connectio....

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.... allowed as a short-term capital loss. Learned counsel for the Revenue, 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....