1978 (8) TMI 9

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....re as follows: " 1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the cost price of 55,100 shares should be taken at Rs. 5,51,000 and not at Rs. 1,45,000 ? 2. Whether the Tribunal was right in holding that on the facts and in the circumstances of the case, the exchange of one security for another could be described as realisation of the se....

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.... in the new company to 10 equity shares in the other company. The assessee also received such a circular letter from the new company. The assessee accepted the said offer and received 55,100 shares of the new company in exchange for the aforesaid holding of 14,500 shares in the other company. The face value of new shares was also at Rs. 10 per share. The assessee, however valued the new shares als....

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....ppeal. It was argued on its behalf before the Tribunal that the assessee was a dealer in shares as correctly stated by the authorities below. It was submitted that the profit in business under s. 145, of the Act depended upon the method of accounting regularly employed by the assessee and such profits must be ascertained on commercial principles. It was further argued that the aforesaid transactio....

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....e contention of the assessee that the transaction did not result in a profit and dismissed this part of the appeal. Thereafter, the Tribunal rejected the application made by the assessee under s. 256(1) of the Act but a Division Bench of this court called for the aforesaid questions at the instance of the assessee. It has not been found by the Tribunal that the cost price of 55,100 shares sh....