9911796707
TMI Blog2016 (1) TMI 1454X X X X Extracts X X X X X X X X Extracts X X X X ..... followed the decision of the Hon ble jurisdictional High Court in the case of Prayas Engineering Ltd. [ 2014 (11) TMI 1086 - GUJARAT HIGH COURT] and also relied upon the decision of the Hon ble High Court of Calcutta in the case of S.K. Tekriwal [ 2012 (12) TMI 873 - CALCUTTA HIGH COURT] - Decided in favour of assessee. Addition on account of Bad Debts - HELD THAT:- As decided in assessee's own case CIT-A after considering the facts and the submissions and drawing support from the decision of Hon ble Delhi High Court in the case of Bonanza Portfolio Ltd. [ 2009 (8) TMI 636 - DELHI HIGH COURT] and also Rameshchandra D. Chokshi i[ 2010 (8) TMI 1140 - ITAT AHMEDABAD] correctly deleted the additions Conversion of shares from sto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 194C read with section 40(a)(ia). 2. That the ld. CIT(A) has erred in law and on facts in deleting the addition of ₹ 2,09,83,221/- towards bad debts despite the fact that the condition laid down u/s. 36(2) of the Act are not satisfied in this case. 3. That the ld. CIT(A) has erred in law and on facts in deleting the addition of ₹ 89,67,780/- despite the fact that conversion stock in trade into investment has resulted in indirect transfer of shares. 4. At the very outset, the counsel for the assessee stated that the first 2 grounds taken by the revenue have been decided against the revenue and in favour of the assessee by the co-ordinate Bench in assessee s own case in A.Y. 2008-09 qua ITA No. 2754 2884/Ahd/2011. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder. Wherein it has followed the decision of the Hon ble jurisdictional High Court in the case of Prayas Engineering Ltd. in Tax Appeal No. 1237 of 2014 dated 17.11.2014 and also relied upon the decision of the Hon ble High Court of Calcutta in the case of S.K. Tekriwal 361 ITR 432. 7. Respectfully, following the decision of the co-ordinate Bench, we set aside the findings of the ld. CIT(A) and direct the AO to delete the impugned disallowance. First ground of revenue s appeal is dismissed and that of assessee s appeal is allowed. 8. Ground no. 2 relates to the deletion of the addition of ₹ 2,09,83,221/- on account of Bad Debts. Assessee was asked to justify its claim. Assessee filed necessary details. The details/explanatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from stock in trade to investment. Assessee filed a detailed reply justifying its conversion of stock from stock in trade to capital assets. It was strongly contended that the shares have not been sold. The conversion is only a book entry and no profit can be said to have arisen and it was further explained that profit if any would arise only when the share are sold. The explanation of the assessee did not find favour with the A.O. The A.O was of the opinion that the conversion should have been at the fair market value. Accordingly, the A.O took the market value of the shares converted from stock in trade to investment and computed the same at ₹ 89,67,780/- and added the same to the return of income of the assessee. Assessee carried ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
