9911796707
TMI Blog2015 (10) TMI 1011X X X X Extracts X X X X X X X X Extracts X X X X ..... e cannot be sustained and is set aside and quashed. Accordingly, the matter is remanded before the Assessing Officer who shall pass necessary order within four months from the date of presentation of a copy of the certified copy of this order after giving an opportunity of hearing to the assessee. At the time of hearing, the assessee is at liberty to rely on the provisions contained in the Residuary Non-Banking Companies (Reserve Bank) Directions, 1987 which shall be dealt with by the Assessing Officer in its order. - ITA No. 247 of 2005 - - - Dated:- 14-9-2015 - Soumitra Pal And Ishan Chandra Das, JJ. For the Appellant : Mr. S Bagchi, Adv Mr. G R Sharma, Adv For the Respondent : Mr. R N Bandyopadhyay, Adv Mr. Aniket Mitra, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rieved, the assessee preferred appeal. The CIT(A) allowed the said appeal by holding, inter alia, as follows : The contention of the AR have been duly considered along with the A.O. s order. It is apparent from the order that the AO has treated the said amount as capital loss as the appellant, being a residuary non-banking finance company had shown the investment as asset. No further reason was given in the assessment order. I have also perused the ratio of decision cited by the ARs.In my view, the said decision is squarely applicable in the instant issue. The appellant had advanced the said sum for acquiring shares of M/s. Essar Oil Limited but forfeited the same due to its failure to deposit the call money. As a result the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of shares in the course of its carrying on business activities of purchase and sale of shares. Therefore, it is an investment and hence the Ld.C.I.T.(A) was not justified in holding the loss as bad debt. In this view of the matter, we are of the considered opinion that the A.O. was perfectly justified in treating the said loss as capital in nature. While holding so, we direct the A.O. to allow set off of this loss against the capital gains, if any, claimed by the assessee. Heard Mr.Bagchi, learned advocate for the appellant and Mr.Bandyopadhyay, learned advocate for the respondent. Mr.Bagchi, relying on the judgement of the Supreme Court in Patnaik Co.Ltd. v. CIT, Orissa : (1986) 161 ITR 365 (SC) and on the provisions containe ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
