TEKSON PRIVATE LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) AS per the direction of the Supreme Court Civil Appeal No. 939 (MT) of 1978 dt. 1st May, 1978, the Tribunal has drawn up a Statement of the Case and referred the following question to this Court :

(2.) THE assessee is a private limited company and carries on business of manufacture and sale of radiators, heat exchangers, oil coolers, brake hoses and hydraulic high pressure hoses. The assessment year is 1971 72 and the relevant previous year ended on 31st March, 1971.

(3.) THE learned counsel for the assessee strongly argued that since the assessee had purchased capital assets which were transferred to the Singapore company in exchange of equity shares worth Rs. 12,80,000, the loss suffered by the assessee was a short term capital loss and should have been allowed as such by the IT authorities as well as the Tribunal. In this connection, he invited our attention to the definition of the word 'transfer' continued in S. 2(47) of the Act as well as the provisions of the capital gains contained in the Act, more particularly ss. 45, 47, 48 and 49.