9911796707
|
Home
Issues:
1. Disallowance of loss on sale of silver. 2. Disallowance of loss on sale of shares. Analysis: *Issue 1: Disallowance of loss on sale of silver* The original assessment disallowed the loss on the sale of silver, considering it a speculation loss. The Assessing Officer disallowed the loss of Rs. 50,928, stating it was a speculative transaction without actual delivery of silver. However, the CIT(A) confirmed the disallowance based on the absence of haulage entries in the books of account. The Tribunal examined the evidence provided by the assessee, including certificates and vouchers, establishing the purchase and sale of silver. The Tribunal found that there was actual delivery of silver, rejecting the speculation loss claim. The Tribunal emphasized that the authorities should not ignore evidence presented by the assessee and allowed the loss as a trading loss. *Issue 2: Disallowance of loss on sale of shares* The Assessing Officer disallowed the loss on the sale of shares, treating it as a fake transaction to reduce trust income. The CIT(A) observed discrepancies in the purchase and sale of shares of M/s Escorts Ltd., leading to the disallowance of the loss. The Tribunal noted conflicting claims regarding the difficulty in title of shares and the necessity to sell and repurchase them. The Tribunal decided to remit the issue back to the Assessing Officer for redetermination, emphasizing the assessee's burden to prove the genuine loss incurred in the course of business. The Tribunal allowed the appeal partly for statistical purposes, directing a fresh examination of the claim. In conclusion, the Tribunal allowed the appeal partly, overturning the disallowance of the loss on the sale of silver and remitting the issue of the loss on sale of shares for further examination by the Assessing Officer.
|
