GANAPATI ENTERPRISES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The subject matter of challenge in this appeal is a judgment and order dated April 21, 2003, passed by the learned Income-tax Appellate Tribunal setting aside the order of the Commissioner of Income-tax (Appeals) and restoring the order of the Assessing Officer. Briefly stated the facts and circumstances of this case are as follows:

(2.) Both the contentions of the assessee were rejected holding that the application money for non-convertible debentures at Rs. 12 each was payable for acquisition of each detachable warrant. Therefore, the claim of the assessee that he had suffered short-term capital loss of a sum of Rs. 9,94,356 was disallowed. The assessee had retained the detachable warrants worth (69863 x 12) Rs. 8,38,356 and recovered a sum of Rs. 7,15,000 by selling 13,000 detachable warrants. Thus, the total receipt was (8,38,356 + 7,15,000) Rs. 15,53,356. After deducting the application money (15,53,356-9,94,356), a sum of Rs. 5,59,000 was earned which was treated as his business income.

(3.) Aggrieved by the order of the Assessing Officer, the assessee preferred an appeal before the Commissioner of Income-tax (Appeals). He upheld the contentions of the assessee. The Revenue preferred an appeal before the learned Tribunal which reversed the order of the Commissioner of Income-tax (Appeals) and restored the order of the Assessing Officer.