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TMI Blog2015 (5) TMI 551X X X X Extracts X X X X X X X X Extracts X X X X ..... Whether the loss suffered by the assessee is a capital loss or revenue loss - Held that:- An answer to the question shall depend upon a further question as to whether if the investment had resulted in profit, whether the profit would have been a capital gain or revenue gain. The answer, according to us, is that the profit would have been a capital gain. We are also supported in the aforesaid view by the judgment in the case of Madan Gopal Radhey Lal (1968 (9) TMI 14 - SUPREME Court ). Therefore, the loss suffered by the assessee is a capital loss as rightly held by the assessing officer, CIT (Appeal) and the learned Income Tax Appellate Tribunal. - Decided against the assessee. - ITA 270 OF 2004 - - - Dated:- 23-3-2015 - GIRISH CHAND ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were traded at ₹ 17/18/- per equity share. Naturally, the assessee could not have proceeded to pay the call money with respect to each equity warrant at the rate of ₹ 90/-. The assessee, therefore, in his books of accounts treated the sum of ₹ 15 lakhs as advance recoverable in cash or kind under the head current assets . The fact that the investement made by the assessee was not an advance nor was the same recoverable has not been disputed by Mr.Murarka before us. Therefore, the treatment given by him to the aforesaid investment was obviously to salvage the damage so that the loss can be passed on as a business loss. In the facts of the case, the assessing officer, CIT (Appeal) and the learned Income Tax Appellat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in (1971) 82 ITR 586. Mr.Murarka drawn our attention to the following views expressed by the Apex Court : Whether a particular holding of shares is by way of investment or forms part of the stock-in-trade is a matter which is within the knowledge of the assessee who holds the shares and it should, in normal circumstances, be in a position to produce evidence from its records as to whether it has maintained any distinction between those shares which are its stock-in-trade and those which are held by way of investment. The assessee, in the present case, made no attempt whatsoever to make out a case that the shares which had been sold were a part of its capital investment. Nor did it place any material from which it could be established ..... X X X X Extracts X X X X X X X X Extracts X X X X
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