- (1.) this appeal by the assessee is directed against the order of the Commissioner (Appeals) relating to the assessment year 1978-79.
(2.) The first ground pertains to the disallowance of Rs. 50,400 being short-term capital loss on transfer of shares.
(3.) The assess-firm claimed to have purchased 34,050 shares of Sree Bihar Jute Twine Mills Ltd. in the names of its patrners, sometime in 1975. During the previous year relevant to the assessment year under appeal, the assessee claimed to have sold 6300 shares to its partners at the rate of Rs. 2 per share as against Rs. 10 per share. The assessee, therefore, claimed a short-term capital loss of Rs. 50,400. The ITO disallowed this claim of the assessee on the ground of unity of identity of a firm and its partners and the impossibility of dealing between the firm and its partners.;