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TMI Blog2017 (4) TMI 970X X X X Extracts X X X X X X X X Extracts X X X X ..... ing officer for the limited purpose of examining whether the amounts have been written-off in accordance with the methodology set out by the Supreme Court in Southern Technologies vs. The Joint Commissioner of Income Tax, Coimbatore (2010 (1) TMI 5 - SUPREME COURT OF INDIA) and Vijaya Bank vs. Commissioner of Income Tax (2010 (4) TMI 46 - SUPREME COURT ). Substantial question of Law No.1 is decided in favour of the assessee by way of remand. Claim of deduction of long term capital loss on sale of shares - Held that:- We are of the opinion that the matter has not been considered in the proper perspective and neither of the authorities below have appreciated the materials that were produced or afforded an opportunity to the assessee to pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the facts on the circumstances of the case the Tribunal was justified in not appreciating that the amount represents money lent in the ordinary course of the business of money lending and hence the same is allowable as bad debt or business loss? 3. Whether on the facts and in the circumstances of the case the Tribunal was right in law in holding that the Appellant is not entitled to claim of Business loss in respect of cancellation of hire purchase agreement the income on which were offered for tax in earlier years and reversed in this year 2. The appellant is a company engaged in the business of hire purchase and leasing. Pursuant to a return of income filed by the company on 1.11.2004 in relation to AY 2004-2005, the assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ominal value. The claim was however, disallowed on the ground that the transfer of shares was not substantiated. 5. The third Substantial Question of Law relates to a claim of business loss arising out of the cancellation of hire purchase agreement of an amount of ₹ 1,91,24,000/-. The assessing officer sought substantiation of the same which was not forthcoming. The loss was thus disallowed on the ground that the claim was not substantiated by way of documentary evidence whatsoever. 6. The order of assessment was carried in appeal before the Commissioner of Income Tax (Appeal), who vide order dated 24.1.2008 rejected the same. The order of the Commissioner of Income Tax (Appeals) is rather cryptic and confirms the order of asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unavailability of competent staff at the relevant time. We are not convinced with the justification provided. As rightly pointed out by the learned Senior Standing Counsel for the Revenue, the appeal at the level of the High Court is for the consideration of a substantial question of law on the basis of material on record. The burden of establishing inability to produce evidence at the stage of assessment, first appeal and second appeal lies heavily upon the assessee. Such burden has not been discharged in the present case. The request for admission of additional evidence is hence rejected. 8. A perusal of the balance sheets on record in respect of year ending 31.3.2003 as well as 31.3.2002 would reveal that the investments, while appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowed the loss of Long Term Capital Gains. It is ordered to be confirmed. This ground of appeal is dismissed. The Tribunal rejects it in the following terms; 7. Upon careful consideration we find that the assessee has failed to produce any document to prove that there had in fact been sale of shares which has resulted in the said loss. In the absence of any documentary evidence the claim of loss on sale of shares cannot be allowed. Hence, we uphold the orders of the authorities below on this issue. 9. We are of the opinion that the matter has not been considered in the proper perspective and neither of the authorities below have appreciated the materials that were produced or afforded an opportunity to the assessee to pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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