SMT A. SUBBULAKSHMY, J.

The assessee is an individual. The assessment year is 1976-77. The assessee purchased 150 shares of Bank of Baroda on 17th January, 1972 for Rs. 15, 042.70. The Bank of Baroda was amalgamated with M/s Mahindra Ugine Steel Company Ltd. on 1st July, 1974. The shareholders of the Bank of Baroda were given option either to accept the shares of the transferee company or cash at the rate of Rs. 140 per share. The assessee exercised the option to receive cash and accordingly he received Rs. 21, 450 on 24th October, 1975. The difference between the amount and the cost of acquisition of those shares was assessed as short-term capital gains by the ITO. The assessee claimed that no capital gain is involved as it was a case of amalgamation. The claim so made was rejected by the ITO. Aggrieved by that order, the assessee preferred appeal before the AAC, who allowed the appeal. The AAC found that the transaction in the assessee's case did not fall within any limbs of s. 2(47) of the IT Act and the transaction did not involve transfer or sale or exchange or relinquishment. On appeal to the Tribunal, the Tribunal set aside the order of the AAC and restored the or