2010 INSC 0099
                                    SUPREME COURT OF INDIA

                                     Commnr. of Income Tax, Delhi

                                                      Vs.

                               Jindal Equip.Leas. & Consult.Service Ltd.

                                           C.A.No.4596 of 2003

                                     (S.H.Kapadia and H.L.Dattu JJ.)

                                                 19.01.2010

                                                   ORDER

1. Heard learned counsel on both sides.

2. Delay condoned.

3. Leave granted in the special leave petition.

4. Having gone through the matter at length, we are not satisfied with the manner in which
the High Court had disposed of the Income Tax Appeals filed by the Department under
Section 260-A of the Income Tax Act, 1961. In the circumstances, we are required to remit
the cases to the High Court for de novo consideration in accordance with law.

5. For the sake of clarity, we would like to frame the question in these cases, which is as
follows:

        "Whether, on the facts and circumstances of this case, the Tribunal was justified in
        directing the Assessing Officer to allow deduction of the losses at Rs.111/- per NCD
        as a business loss?"

6. In this connection, the High Court will also consider the effect of the assessee(s) retaining
the detachable warrant and, if that is taken into account, whether there would be, at all, a
trading loss? It is the case of the Department, before us, which is, of course, disputed by the
assessee(s) that the High Court has failed to notice the market value of the shares at the time
of issue of NCD. We express no opinion on the merits of the case. We expect the High Court
to answer the above question in accordance with law.

7. Accordingly, civil appeals are disposed of with no order as to costs.

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