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TMI Blog2019 (1) TMI 1414X X X X Extracts X X X X X X X X Extracts X X X X ..... NS Law Associates for the respondent P.C. 1. The Revenue is in appeal against the judgment of the Income Tax Appellate Tribunal ("the Tribunal" for short). The issues concern the respondent assessee company for the Assessment Year 2001-02. The Revenue has framed multiple questions. However, the principal issues raised by the Revenue before us are three, which can be summarized in terms of follow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see having claimed such loss as a business loss pointing out that the assessee had made investment in the shares in one M/s. New ICO Global Ltd. During the period relevant to the period under consideration, the assessee had written off investment to the tune of Rs. 5.17 crores on account of diminishing of value of the shares and claimed the same as a business loss. The Assessing Officer and CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome Tax Act, 1961 ("the Act" for short). 3. Having heard learned Counsel for the parities and having perused documents on record, we notice that the assessee having made investment and suffered losses in the process, had claimed such loss as a business loss. The Tribunal instead treated such loss on capital account and was urged to examine the alternative contention of the assessee that such loss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act provides as under : "46(2) Where a shareholder on the liquidation of a company receives any money or other assets from the company, he shall be chargeable to income-tax under the head "Capital gains", in respect of the money so received or the market value of the other assets on the date of distribution, as reduced by the amount assessed as dividend within the meaning of sub-clause (c) of cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, held that there would be no revenue loss. The Tribunal, therefore, while accepting the assessee's contention, directed the Assessing Officer to verify necessary facts before granting relief. We do not find any reason to interfere. The Revenue does not dispute that the assessee had made adjustment in the claim of its depreciable asset in the later year. In the later year, the Revenue ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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