2002 (7) TMI 16 - HC - Income Tax

Bad debts - West Bengal State Financial Corporation formed under the State Financial Corporations Act, 1951, had invested in shares of various companies and the investments - assessee-corporation wrote off the above said as a bad investment and stated that there is no possibility of getting any amount against the investment in the shares of the company . - Once one accepts the findings on fact of the Tribunal that the shares were not treated as stock-in-trade by the corporation but as investments in the said companies, the argument of writing off made by the assessee cannot be sustained on any point of law, nor on any particular section of the Income-tax Act.

Summary

The High Court of Calcutta rejected an appeal under section 260A regarding the West Bengal State Financial Corporation's investment in shares of various companies totaling Rs. 14,05,785. The Tribunal refused to write off the shares as bad investments, stating they were not treated as stock-in-trade but as investments. The appeal was rejected as no point of law arose in the case.