Indian Kanoon - Search engine for Indian Law

The assessee company made the payment of Rs. 11,50,00,000/- to M/s. Deepak Fertilizers and Petrochemicals Corpn. Ltd., as under:

06.01.89 2,87,50,000 On application @ Rs. 25/- for 1150000 debentures 27.03.89 1,87,50,000 Balance @ Rs. 75/- for 250000 debentures 28.03.89 2,62,50,000 Balance @ 75/- for 200000 debentures 29.03.89 2,62,50,000 Balance @ 75/- for 350000 debentures   11,50,00,000   During the course of assessment, the assessee company has furnished copies of letters sent by M/s. DFPCL to the assessee company, Deepak Nitrite Ltd., wherein it has been stated that the allotment letters were actually delivered to the assessee company, M/s. Deepak Nitrite Ltd. The assessee company has also furnished the copy of the share transfer from dated 29.3.89, wherein it has been mentioned that the assessee company M/s. Deepak Nitrite Ltd., has sold the non-convertible portion of Part 'C' of the debenture to the Unit Trust of India. In view of it, it was the contention of the representative of the assessee company that the delivery of these shares/debentures were duly received by them and thus, the shares were sold by actual delivery to Unit Trust of India at the price of Rs. 47.875 per debenture. It is relevant to mention here that these debentures were not quoted in the Stock Exchange till 31.3.90 and both the Companies namely DFPCL and M/s. Deepak Nitrite Ltd., are under the same management.

8. In the aforesaid set of facts and circumstances of the case all the four questions raised on behalf of the assessee and question No. 2 raised on behalf of Revenue in Reference Application No. 657/Ahd/98 are required to be left unanswered leaving it open to the Tribunal to decide the ground of Appeal raised by the Revenue and determine, in the first instance, whether the loss in question was a genuine transaction or not.

9. In so far as the solitary question raised in Reference Application No. 656/Ahd/98 at the instance of Revenue is concerned, it is in agreed position between the parties that the Tribunal has followed its own decision in assessee's own case for earlier years. That the said earlier order of the Tribunal was brought before this Court by way of Reference and the issue stands concluded by the Judgment in the case of Commissioner of Income-tax v. Deepak Nitrite Ltd. .