1988 (12) TMI 12

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....us in this reference at the instance of the Department read thus : "(i) Whether, on the facts and in the circumstances of the case, the assessee suffered capital loss of Rs. 41,92,021 ? (ii) Whether, on the facts and in the circumstances of the case, capital loss of Rs. 41,92,021 was liable to be set off against capital gains of Rs. 4,07,527 in the assessment year 1966-67 ?" During the pr....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....es as on January 1, 1954, should be taken at 1/10 the of the then market value, i.e., at Rs. 7,47,393. Thus as against the assessee's claim that she suffered a capital loss of Rs. 41,92,021, the Income-tax Officer computed the capital gains at Rs. 25,07,499. During the previous year relevant to the assessment year 1966-67, the assessee earned capital gains amounting to Rs. 4,07,527 which she wa....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ayment of the capital equal to 90% of the face value in 1958, according to the Tribunal, did not, in any way, alter the continuity and/or identity of the shares. The identity and continuity remaining the same, the Tribunal further held that the market value of the shares as on January 1, 1954, was the value to be taken into account for the purposes of computing the capital gain or loss in the asse....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... price for the purpose of computing the gain or loss. It is true that the repayment of capital equal to 90% of the face value of the shares in March, 1958, did affect the value of the shares as on January 1, 1954. Since, however, in view of the admitted position that the identity of shares remained the same and in any event, the extent of interest represented by each share in the assets of the com....