IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.4596 OF 2003

Commissioner of Income Tax, Delhi ...Appellant(s)

Versus

Jindal Equipment Leasing and  Consultancy Service Limited  

...Respondent(s)

With Civil Appeal No.4597/2003 and Civil Appeal No.567/2010 @  S.L.P. (C) No.8367/2009

O R D E R

Heard learned counsel on both sides.

Delay condoned.

Leave granted in the special leave petition.

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.

For the sake of clarity, we would like to frame  

the question in these cases, which is as follows:

...2/-

- 2 -  

“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?”

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.

Accordingly, civil appeals are disposed of with  

no order as to costs.

                                      ..................J.                     (S.H. KAPADIA)

                                      ..................J.                     (H.L. DATTU)

New Delhi, January 19, 2010.