The assessee is an approved sub-account of The Master Trust Bank of Japan Limited, a Foreign Institutional Investor (FII) registered with Securities and Exchange Board of India (SEBI). Accordingly, provisions of S.  115AD of the Act are applicable for taxing the income earned by the assessee. For the assessment year the AO found that the assessee had issued GDRs against underlying shares of Bajaj Hindustan Limited to non residents on 27.01.2006. The holders of said GDRs wanted to redeem them against underlying shares and, ultimately, GDRs were cancelled on 11.04.2006 and underlying shares were released which were sold in Bombay Stock Exchange (BSE) on 11.04.2006. Since, the date of release of shares as on 11.04.2006 was a public holiday and the Indian share markets were closed, the assessee took cost of acquisition of shares of Bajaj Hindustan Limited at Rs 523.95 being the opening price of shares as on the next working day i.e. 12.04.2006. After considering the claim of the assessee vis-a-vis the facts on record, the AO though, agreed with the assessee that the applicable day for considering the cost of acquisition of shares is 12.04.2006, since, the stock markets were closed on the date of release i.e. 11.04.2006, however, he did not agree with the assessee in so far as the cost of acquisition taken by the assessee at Rs 523.94. On the basis of information from the BSE, the AO found that on 12.04.2006, though, the opening price of shares of Bajaj Hindustan Limited was quoted at Rs 523.95, however, it went up to a highest price of Rs 525 and lowest price of Rs 490-during the day and ultimately closed on closing price of Rs 494.20-. Considering the above, the AO concluded that in view of varying price of shares of Bajaj Hindustan Limited during the applicable day, the opening price of shares towards cost of acquisition, as considered by the assessee, is incorrect. According to him, in view of fluctuating price of shares during the day, the weighted average price of shares computed at Rs 504.10 should be considered as cost of acquisition. Accordingly, applying the cost of acquisition of shares at Rs504.10, he computed the Short term capital loss, which resulted in a difference of Rs 1,19,10,000 between the Short term capital loss computed by the assessee and as determined by the AO. Thus, this differential amount was considered for addition to the income of the assessee. Though, the assessee challenged the aforesaid addition before learned CIT (A) however, it did not succeed.  Tribunal held that,what ideally should have been taken as the cost of acquisition/FMV of shares of Bajaj Hindustan Ltd., for computing the Short term capital gain/loss is the aforesaid price. However, considering the fact that the revenue authorities have agreed with the assessee with regard to the applicable date for cost of acquisition as 12.04.2006. Tribunal considering the facts of the case the assessee is  justified in adopting the cost of acquisition of shares at Rs 523.95.Accordingly directed the  AO to accept the short term capital loss computed by the assessee.  (AY. 2007-08)