2009 (7) TMI 118

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....ansfer of shares, which was chargeable to tax in the assessment year 1990-91, but which, in view of the provisions of section 54F of the Act became liable to be taxed in assessment year 1993-94 should be computed in accordance with law applicable to the assessment year 1993-94 ?" 2. Briefly stated the facts giving rise to the present appeal are as follows: 3. The reference relates to the assessment year 1993-94. 4. During the previous year relevant to the assessment year 1990-91, the assessee had sold 4000 shares of M/s. Ballarpur Industries Limited for a consideration of Rs. 6,68,150. The assessee wanted to avail of the benefit of section 54F and in terms of sub-section (4) thereof deposited the net consideration in the bank. Howe....

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....le to the assessment year 1990-91) should be accepted. Vide his order dated August 8, 1994, the Commissioner of Income-tax (Appeals) held that since as per the proviso to section 54F(4) the assessee became liable to be taxed on capital gains in the assessment year 1993-94, the law, as it stood in the assessment year 1990-91 could not be applied for granting deduction. However, he held that the benefit of indexed cost should be given to the assessee according to the second proviso to section 48 of the Act as it stood with effect from April 1, 1993. 5. The Tribunal has held that the position of law is that profit out of transfer of shares was chargeable to tax under section 54F(4) of the Act for the assessment year 1990-91 itself. However,....