NAVIN JINDAL Vs. ASSISTANT COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) HEARD learned counsel on both sides.

(2.) IN this batch of civil appeals, the narrow issue which arises for determination is the nature of the loss suffered by the appellant(s) [assessee(s)] - whether Rs.2,43,750/- was a short-term capital loss, as contended on behalf of the assessee(s), or whether the said loss was a long-term loss, as contended on behalf of the Revenue?

(3.) TO complete the chronology of events, on 7th August, 1991, assessee sold 8460 equity shares of JSL at Rs.240/- for the total consideration of Rs.20,30,400/-, whose cost of acquisition was Rs.3,63,200/- and, consequently, the transaction resulted in a long-term gain for the assessee in the sum of Rs.16,67,200/-. Similarly, on 20th June, 1991, assessee sold 7000 equity shares of Saw Pipes Limited ("SPL", for short) at the rate of Rs.103/- each, for total consideration of Rs.7,21,000/- from which the assessee deducted Rs.70,000/- towards cost of acquisition, resulting in a long-term gain of Rs.6,51,000/-. In all, under the caption, "long-term gain" assessee earned Rs.23,18,200/- [Rs.16,67,200 + Rs.6,51,000]. These figures are not in dispute, though there is a small variation in arithmetical calculations made by the two sides, which is insignificant.