JUDGMENT :

Rajesh Balia, J.

1. At the instance of the Commissioner of Income-tax, the Income-tax Appellate Tribunal, Ahmedabad Bench A, has submitted the statement of case and referred the following question of law arising out of its order in ITA No. 1951/Ahd. of 1981 for the assessment year 1977-78 :

"Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in coming to the conclusion that the assessee was entitled to claim capital loss of Rs. 27,154 under the provisions of section 46(2) of the Income-tax Act, 1961?"

The assessee had claimed before the Income-tax Officer a loss of Rs. 27,154 being loss on shares of Indian Bearings Limited and H. K. Sons Private Limited under the head "Capital gains". The assessee's case was that the company with respect to whose shares the loss had been claimed had gone into voluntary liquidation and nothing was distributed by those companies to its members, therefore, the assessee received nil consideration for his holdings in the companies. He claims that capital loss should have been computed under section 46(2) read with section 48 and dealt with under the provisions of the Income-tax Act as such. The Income-tax Of