COMMISSIONER OF INCOME TAX Vs. ANUJ A SHETH

JUDGEMENT

(1.) Admit. The following question of law will arise in the appeal filed by the Revenue under Section 260A of the Income Tax Act, 1961:

(2.) The question of law has been reframed during the course of the hearing of the appeal since the question as formulated by the Revenue was lacking in clarity.

(3.) The appeal arises out of an order passed by the Income Tax Appellate Tribunal on 5th September, 2008. The Assessment Year is 2001-02. In the present case the assessee entered into eight sale transactions involving the shares of four companies. Of the sale transactions, the shares of Infosys Technologies comprised entirely of bonus shares where the cost of acquisition was nil. The bonus shares of Infosys Technologies were sold for a consideration of Rs. 6.13 Crores. There being no cost of acquisition, the long term capital gains were computed at Rs. 6.13 Crores. Out of the remaining seven transactions one sale resulted in a long term capital gain of Rs. 9.47 lacs with indexation whereas in the remaining transactions the assessee reported a loss of Rs. 2.78 Crores with indexation. The assessee set off the long term capital loss of Rs. 2.68 Crores from the long term capital gains of Rs. 6.13 Crores and paid a tax of 10% on the net long term capital gain of Rs. 3.45 Crores.