1990 (1) TMI 104

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....mpany in the name of the partner. (3) CIT(A) failed to appreciate that as per the provisions of section 108 of the Companies Act, 1956, the shares can be transferred by the subsequent purchaser in his name in the records of the company at any time before the book closure of the Company and that it was not necessary that immediately on receipt of shares, he has to get them transferred in his own name. (4) CIT(A) erred in disallowing Rs. 2,000 out of professional charges paid to architect and in treating it as a capital expenditure. 2. The first three grounds pertain to short-term capital loss of Rs. 1,52,075 and, thus, they are taken up together. The assessee had claimed short-term capital loss of Rs. 1,52,075 on sale of shares of B....

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....d and the title in the shares had passed to the purchaser once the title passed to the purchaser, the transaction was complete and the loss had crystallised in this very assessment year and, therefore, it should have been allowed. He further stressed that the provisions of the Company Law Act did not affect the sale where it had been provided that the transfer would be complete for the purposes of the company, when the sale had been registered in the register maintained by the company. In fact, that provision was only for the purpose of the company who was a third party. On the other hand, the Departmental Representative relied on the order of the CIT(A) in which he confirmed the order of the ITO relying on the provisions of the Companies A....