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TMI Blog2018 (6) TMI 1057X X X X Extracts X X X X X X X X Extracts X X X X ..... dged to be unjustified. The transactions are real and true and do not violate any provisions of law. They cannot be said to be artificial, counterfeit, feigned or a contrivance - since assessee has sold a capital asset which has resulted in a capital loss of ₹ 24,43,750/ - thus as per the provisions of section 71 the loss suffered on the sale of capital asset has to be set off against the income chargeable to tax under other heads of income. There cannot be any escape from giving this effect to the transactions entered into by the assessee - thus the loss is allowed - Decided against the revenue. - R/TAX APPEAL NO. 1652 of 2007 - - - Dated:- 13-6-2018 - MR. AKIL KURESHI AND MR. B.N. KARIA, JJ. For The Petitioner : Mr Mani ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpugned order dated 19.04.2007 against which, this appeal has been filed. 4. When this appeal was pending, this Court delivered its judgement in case of Deepak Nitrite Ltd. vs. Commissioner of Income Tax reported in [2008] 307 ITR 289 in the cross references filed by the assessee and the department against the Tribunal's judgement dated 06.05.2008. On the issue on hand the Court directed as under:- 8. In the aforesaid set of facts and circumstances of the case all the four questions raised on behalf of the assessee and question No.2 raised on behalf of the Revenue in Reference Application No. 657/Ahd/98 are required to be left unanswered leaving it open to the Tribunal to decide the ground of appeal raised by the Revenue a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al, counterfeit, feigned or a contrivance. If this be so, the legal effect, as per the provisions of the Income Tax Act, will have to be given as prescribed by law. The assessee has sold a capital asset which has resulted in a capital loss of ₹ 24,43,750/-. As per the provisions of section 71 of the Income Tax Act as applicable in A.Y. 1989- 90 the loss suffered on the sale of capital asset has to be set off against the income chargeable to tax under other heads of income. There cannot be any escape from giving this effect to the transactions entered into by the assessee. 10. We are therefore of the view that the CIT(A) was justified in reversing the finding of the AO so far as this issue is concerned. Thus, Revenue's ground ..... X X X X Extracts X X X X X X X X Extracts X X X X
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