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TMI Blog2017 (7) TMI 1048X X X X Extracts X X X X X X X X Extracts X X X X ..... stock-in-trade and cannot be held to be otherwise. In fact, this aspect of the matter was decided by the Income Tax Appellate Tribunal in the assessee's own case in respect of assessment year 1970-71 wherein, by a well reasoned order dated 14.3.1975, the stand of the assessee that investment in companies would constitute represent stock in trade, was accepted. Question No.2 is thus answered in favour of the assessee and against the revenue. Loans to companies in liquidation had become bad debts and ought to be written off - whether he Tribunal was right in allowing the re-valuation of only loss making shares at market value? - Held that:- A detailed analysis has been undertaken therein with respect to various items identified and sought ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... van For M/s. Subbaraya Iyer ORDER ( Order of the Court was delivered by Dr.Anita Sumanth, J.) The questions raised and admitted in this departmental appeal are as follows; 1. Whether in the facts and circumstances of the case, the Tribunal had enough material to hold and was right in holding that the loans to companies in liquidation had become bad debts and ought to be written off? 2. Whether in the facts and circumstances of the case, the Tribunal was right in holding that the shares are the stock in trade of the assessee company? 3. Whether in the facts and circumstances of the case, the Tribunal was right in allowing the re-valuation of only loss making shares at market value? 2. The assessee is a State G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arantees and under writing subscription. The assessee was thus incorporated solely for the purpose of ensuring and facilitating growth and development of industries in the state of Tamilnadu. Investment by way of subscription to shares is solely on account of the under writing operations. Such being the position, the investments are of the nature of stock-in-trade and cannot be held to be otherwise. In fact, this aspect of the matter was decided by the Income Tax Appellate Tribunal in the assessee s own case in respect of assessment year 1970-71 wherein, by a well reasoned order dated 14.3.1975, the stand of the assessee that investment in companies would constitute represent stock in trade, was accepted. Question No.2 is thus answered in f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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