2011 (8) TMI 1251 - HC - Income Tax

Summary

Issues involved: The judgment addresses four questions of law raised by the Revenue in the appeal.

Question (i):
The Tribunal allowed the assessee's claim of loss of Rs. 2,07,522. The issue is whether this decision was justified under the circumstances.

Question (ii):
The Tribunal disregarded the findings of investigations by JPC and SEBI regarding the Security Scam 2001. The issue is whether this decision was legally justified.

Question (iii):
The Tribunal held that disallowances of interest amounting to Rs. 17,47,23,076 related to funds lent as interest-free loans to sister concerns were not tenable. The issue is whether this decision was legally justified, considering a similar question was rejected in a previous case.

Question (iv):
The Tribunal allowed speculation loss to be set off against income from other sources without appreciating the provisions of Section 73(1) of the Income Tax Act, 1961. The issue is whether this decision was correct under the law.

The appeal was admitted on questions (i), (ii), and (iv) for further consideration. The matter is to be heard along with another Income Tax Appeal.