2007 (7) TMI 230

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....ppellate Tribunal in ITA No.1403/Mds/2001 dated 22.12.2006, under the following facts and circumstances of the case. 2. The relevant assessment year is 1994-95.  The assessee filed its return of income on 30.11.94 showing 'Nil' income.  The case was processed on 26.10.95 accepting the same.  In response to the notice under Section 143(2) of the Income-tax Act, 1961, the assessee filed the details as called for.  The assessee, under the Capital Gains, claimed short term capital loss to the tune of Rs.22,42,053/- in respect of sale of 43,535 rights to Partly Convertible Debentures of EID Parry (I) Ltd. at the value of Rs.5/- to Tichai Investments. Pvt. Ltd.  The details of the working are stated as hereunder:- &....

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....), who, by order dated 18.9.2001, held that the market value of the rights issue has to be reckoned with regardless of whether the sale contribution of the rights is less than the notional loss or not.  On appeal at the instance of the Revenue, the order of the Commissioner was confirmed by the Appellate Tribunal by order dated 22.12.2006 holding that the decision of the Apex Court is squarely applicable.  Hence, the present appeal. 6. In the case before the Apex Court in Miss.Dhun Dadabhoy Kapadia  v. Commissioner of Income-tax  [(1967) 63 I.T.R. 651 (SC)], referred supra, the assessee, who was holding by way of investment 710 ordinary shares, renounced her right to all the 710 shares and realised certain amount and ....