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2016 (2) TMI 37 - ITAT CHENNAIDisallowance of write off of the cost of investments in equity shares - whether allowable as revenue loss or capital loss? - CIT(A) deleted the addition - Held that:- In the present case, the assessee is holding the investment in shares in capital field and it was not treated as stock-in-trade, the realization of investment and loss arising out of it only in a capital field and it is only a capital loss. For this purpose, the ld. DR placed reliance on the judgement in the case of Spectra Shares and Scrips Pvt. Ltd. v. CIT [2013 (6) TMI 173 - ANDHRA PRADESH HIGH COURT]. Accordingly, we reverse the order of the ld. CIT(A) on this issue and the ground raised by Revenue is allowed. Addition made in respect of the ASIDE grant received by the assessee - CIT(A) deleted the addition - Held that:- In the present case, the Comptroller and Auditor General of India and other audit agencies of Central Government have observed that the grant of ₹.9.53 crores received by the assessee from Central Government towards ASIDE was wrongly treated the amount received as a revenue receipt in its books and in view of the above observations, the assessee realised the mistake and rectified the same and filed revised return before due date of filing of return of income. Therefore, we find that the ld. CIT(A) has rightly deleted the addition made by the Assessing Officer and the order passed by the ld. CIT(A) on this issue stands confirmed. - Decided against revenue. Disallowance of unsuccessful project promotional expenses written off - Held that:- The issues is squarely covered by the decision of the Coordinate Bench of the Tribunal in assessee’s own case for earlier assessment years wherein hedl he assessee had been investing in several projects and whenever feasible, promoting new industrial undertakings. If the new undertakings materialized the expenses were transferred and recovered from the new unit. However, if the project was unsuccessful, the assessee wrote off the expenses. The Tribunal held that as the assessee’s business was promotion of new ventures, the project expenditure was incidental to the business and hence could not be treated as preliminary or capital in nature and accordingly allowed the same. The order of the Tribunal was upheld by the Hon’ble High Court.- Decided against revenue.
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