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TMI Blog2007 (9) TMI 262X X X X Extracts X X X X X X X X Extracts X X X X ..... or market price whichever is lower - 1315 of 2006 - - - Dated:- 21-9-2007 - MADAN B. LOKUR and DR. S. MURALIDHAR JJ. Mrs. P. L. Bansal for the appellant. Ajay Vohra with Mrs. Kavita Jha for the respondent. JUDGMENT The judgment of the court was delivered by Madan B. Lokur J.- The Revenue is aggrieved by an order dated August 24, 2004, passed by the Income-tax Appellate Tribunal, Delhi Bench "F", in I.T.A. No. 1508/Del/1999 relevant to the assessment year 1992-93. 2. The assessee is a private limited company dealing in shares. The assessee came to know that the erstwhile HCL had entered into a joint venture agreement with Hewlett Packard, USA, and that in terms thereof, shares of the erstwhile HCL would effectively ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lanation given by the assessee for purchasing shares of the erstwhile HCL at a high price was that it had purchased a large number of shares in large blocks from the Delhi Stock Exchange. The assessee submitted that necessary brokers' notes were available and the payment made to the brokers was by account payee cheques. In other words, according to the assessee, the transactions were above board. The Assessing Officer did not accept this explanation and made an addition of Rs. 89,29,635 to the income of the assessee on account of the high price paid by the assessee for the purchase of shares of the erstwhile HCL. 8. In so far as the second issue regarding valuation of the closing stock of shares is concerned, the assessee worked out the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng stock of shares, the Tribunal directed the Commissioner of Income-tax (Appeals) to examine the matter in the light of section 49(2) of the Act and also to take into consideration the fact that the shares of the erstwhile HCL were split up into shares of HCL HP Ltd. and HCL Ltd. 12. The Commissioner of Income-tax (Appeals) then heard the matter on remand in terms of the directions given by the Tribunal. In respect of the first issue, the Commissioner of Income-tax (Appeals) came to the conclusion that the Assessing Officer had taken the price of the shares of the erstwhile HCL as prevalent in the Bombay Stock Exchange while the assessee had actually made purchases from the Delhi Stock Exchange. More-over, the transaction was confirmed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -tax (Appeals) that the addition was not tenable. 14. Feeling aggrieved by the order passed by the Commissioner of Income-tax (Appeals), the Revenue preferred an appeal before the Tribunal. 15. On a reading of the order of the Tribunal, we find that the submissions before it really centred around the interpretation of the earlier order dated January 20, 1997, passed by the Tribunal when it remanded the case to the Commissioner of Income-tax (Appeals) and whether the directions given by the Tribunal were correctly interpreted and implemented by the Com-missioner of Income-tax (Appeals). In this regard, the Tribunal came to the conclusion that the Commissioner of Income-tax (Appeals) correctly understood the earlier order passed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re there is no discontinuation of business, the closing stock is to be valued at cost or market price, whichever is lower." On these facts, the Tribunal found that there was no error committed by the Commissioner of Income-tax (Appeals). 19. We are of the view that the scope of enquiry before us is rather limited in view of the order passed by the Tribunal. The only question that really arises before us is whether the Commissioner of Income-tax (Appeals) correctly understood and implemented the earlier order passed by the Tribunal on January 20, 1997. The Tribunal has found no error in the view taken by the Commissioner of Income-tax (Appeals). We do not find any reason to interfere in this regard because this is essentially a matter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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