2010 (9) TMI 211 - HC - Income Tax

Assessee (manufacturing and is an industrial undertaking) transferred the shares by relinquishing the right and suffered capital loss - Held that - industrial undertaking was eligible for deduction under Section 80IA of the Income Tax Act - income was earned on account of agricultural operation - 50% expenses under the head maintenance of the Guest House related to messing of the employees who were taken to complete the project at Nepal. They are the expenses of messing rather than that of Guest House expenses - Appeal is dismissed

Summary

The Allahabad High Court dismissed the appeal by the Income-Tax Tribunal in 2010. The Tribunal found that the assessee suffered capital loss from transferring shares and was eligible for deduction under Section 80IA. The income was considered agricultural income. The appeal was dismissed as no question of law arose.