M/S JINDAL EQUIPMENT LEASING CONSULTANCY SERVICES LTD. vs. COMMISSIONER OF INCOME TAX
No AI summary yet for this case.
2026 INSC 46 1
REPORTABLE
IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURI ICTION
CIVIL APPEAL NO. 152 OF 2026 [Arising out of S.L.P. (C) No. 2028 of 2021]
M/S JINDAL EQUIPMENT LEASING CONSULTANCY SERVICES LTD
... APPELLANT(S)
VERSUS
COMMISSIONER OF INCOME TAX DELHI – II, NEW DELHI
... RESPONDENT(S)
WITH CIVIL APPEAL NO. 153 OF 2026 [Arising out of S.L.P. (C) No. 2190 of 2021]
M/S NALWA INVESTMENT LTD.
... APPELLANT(S)
VERSUS
COMMISSIONER OF INCOME TAX – V NEW DELHI
... RESPONDENT(S)
WITH CIVIL APPEAL NO. 154 OF 2026 [Arising out of S.L.P. (C) No. 2188 of 2021] Digitally signed by NITIN TALREJA Date: 2026.01.09 16:59:31 IST Reason: Signature Not Verified
2
M/S ABHINANDAN TRADEX LTD. (EARLIER KNOWN AS M/S ABHINANDAN INVESTMENT LTD)
... APPELLANT(S)
VERSUS COMMISSIONER OF INCOME TAX DELHI – I, NEW DELHI
... RESPONDENT(S)
WITH CIVIL APPEAL NO. 155 OF 2026 [Arising out of S.L.P. (C) No. 2197 of 2021]
M/S MANSAROVER TRADEX LTD (EARLIER KNOWN AS M/S MANSAROVER INVESTMENT LTD)
... APPELLANT(S)
VERSUS COMMISSIONER OF INCOME TAX DELHI – II, NEW DELHI
... RESPONDENT(S)
J U D G M E N T R. MAHADEVAN, J. Leave granted.
The present appeals arise out of a common judgment and final order dated 07.08.2020 passed by the High Court of Delhi1 in ITA Nos. 935, 822, 853, and 961 of 2005, pertaining to the Assessment Year 1997-98. By the 1 Hereinafter referred to as “the High Court”
3
impugned judgment, the High Court remanded the matters to the Income Tax Appellate Tribunal2 for fresh adjudication on the question of whether the shares held in the amalgamating company constituted stock-in-trade or capital assets, upon observing that, if the shares were, in fact, held as stock-in-trade, the transaction would fall outside the purview of Section 47(vii) of the Income Tax Act, 19613, and its taxability would consequently be governed by Section 28 under the head “profits and gains of business or profession”.
FACTUAL MATRIX
The facts, which are common to all these appeals, may be briefly stated as under:
The appellants are investment companies of the Jindal Group. The shares of the operating companies, namely Jindal Ferro Alloys Limited (JFAL) and Jindal Strips Limited (JSL), were held as part of the promoter holding, representing controlling interest. The appellants had also furnished non-disposal undertakings to the financial institutions / lenders who had advanced loans to the operating companies. These shares were reflected as investments in the balance sheets of the appellants.
During the previous year relevant to the assessment year 1997-98, pursuant to a scheme of amalgamation approved by orders dated 19.09.1996
2 For short, “the Tribunal” 3 For short, “the I.T. Act”
4
and 03.10.1996 of the High Courts of Andhra Pradesh and Punjab & Haryana respectively, under Sections 391 – 394 of the Companies Act, 2013, JFAL was amalgamated with JSL. As per the sanctioned scheme, the appointed date of amalgamation was 01.04.1995, and the orders sanctioning the amalgamation were filed with the
