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TMI Blog2018 (4) TMI 261X X X X Extracts X X X X X X X X Extracts X X X X ..... original loan is very much covered to claim deduction u/s 24(b) of the Act. We note that the CIT(A) by placing reliance on the decision of the Coordinate Bench in the assessee’s own case deleted the addition by the AO. - Decided against revenue - ITA No. 1945/Kol/2016 - - - Dated:- 4-4-2018 - Hon ble Shri P. M. Jagtap, AM And Shri S. S. Viswanethra Ravi, JM For the Appellant: Shri Arindam Bhattcharjee, Addl. CIT For the Respondent: Shri Lokesh Kumar Mishra, AR ORDER Per S. S. Viswanethra Ravi, JM This is an appeal by the Revenue against the order dated 04.08.2016 passed by C.I.T-(A)-18, Kolkata for A.Y.2011-12. 2. The only issue is to be decided as to whether the CIT(A) is justified in deleting the addition of & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that subsequent loan availed by the assessee to repay his original loan is very much covered to claim deduction u/s 24(b) of the Act. We note that the CIT(A) by placing reliance on the decision of the Coordinate Bench in the assessee s own case (supra) deleted the addition by the AO. The relevant portion of which is reproduced herein below : From the aforesaid explanation, it is very much clear that the subsequent loan taken by assessee to repay his original loan is very much covered for claim the deduction u/s. 24(b) of the Act. It is also important to note that assessee has taken a loan from SBM and same loan from the same bank was enhanced as a result of restructuring of the existing loan. Therefore, in this case no third loan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... share and neither purchase nor sold any other shares during the year under consideration. So the conversion into stock-in-trade done by the assessee-company was not in normal course of the business of assessee. Accordingly, the AO treated the loss arising out of the purchase-sale transactions amounting to ₹ 1,53,45,722/- (2,06,48,950 53,03,228/-) as LTCG loss and covered u/s 10(38) of the Act.. 9 Aggrieved, assessee preferred appeal before Ld. CIT(A) who has deleted the addition made by AO by observing that as per CBDT Circular No. 4/2007 dated 15.06.2007 the assessee can have two portfolio i.e., an investment portfolio and another of trading portfolio and section 45(2) of the Act also provides that assessee can convert its ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n sections [***] [54, 54B, [***] [54D, [54E, [54EA, 54EB,] 54F [54G and 54H]]] be chargeable to income-tax under the head Capital gains , and shall be deemed to be the income of the previous year in which the transfer took place. [(1A) .. [(2) Notwithstanding anything contained in sub-section (1), the profits or gains arising from the transfer by way of conversion by the owner of a capital asset into, or its treatment by him as stock-in-trade of a business carried on by him shall be chargeable to income-tax as his income of the previous year in which such stock-in-trade is sold or otherwise transferred by him and, for the purposes of section 48, the fair market value of the asset on the date of such conversion or treatment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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