9911796707
TMI Blog1991 (10) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... ------------------------------- Sl. Name of the Name of Purchase Sale Name Loss No. Co. whose Broker ---------------------------- -------------- of shares were Date Date of Date of brokers (Rs.) purchased of Con- Acquisition Contract sold - No. of tract -------------- shares Date of transfer -------------------------------------------------------------------------------------------------------------------------------------------------- 1 2 3 4 5 6 7 8 ------------------------------------------------------------------------------------------------------------------------------------------------- 1. Tata Tea Singhania 28-11-83 8-2-84 9-2-84 Shyam 33,600 -------------- Bros. ------------- Co. 5600 shares 15-2-84 2. I.T.C. Shyam 16-12-83 8-2-84 6-2-84 Singhania 21,840 Co. -------------- Bros. 14-2-84 3. Assam Singhania 25-11-83 22-2-84 9-2-84 Shyam 39,600 Frontier ---------------- Co. ------------- 29-2-84 9000 shares 4. Texmaco Shyam 6-1-84 22-2-84 13-2-84 Singhania 7,840 Ltd. Co. ------------- Bros. --------------- 29-2-84 1600 shares Total : 69,280 -------------------------------------------------------------------------------------- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder which is reproduced above supports the assessee's contentions. It has also been submitted that the Assessing Officer is not correct in alleging that the loss in those transactions are speculative in nature having regard to the fact that the delivery of the shares were effected through Indian Overseas Bank. The assessee has filed copies of Bank advices and bank statements evidencing delivery through Indian Overseas Bank. 7. We have considered the rival submissions with reference to papers filed before us, and hold that the CIT(Appeals) is justified in directing the Assessing Officer to treat the loss as business loss. The assessee has filed full details of contracts, dates of delivery of shares, and particulars about the payments. The shares were purchases and sold through regular share brokers and delivery of those shares on sale by the assessee were effected through Indian Overseas Bank. The authorised representative of the assessee has also filed the details of distinct number of purchases and sales of shares of different companies made by the assessee-company in which the loss was incurred. As regards the ITO's main reason for treating the losses as speculative that the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned Departmental Representative fully relied on the findings of the ITO in his assessment order and stated that deletion is not justified. 10. The learned authorised representative of the assessee, on the other hand, supported the findings of the CIT(Appeals) and contended that all the purchases of raw Jute are from regular dealers and the dealers purchase the raw Jute from the growers. The sales by the assessee are to the Dalhousie Jute Co. It is stated that the assessee has all the details of purchases and sales which are in pages 40 and 88 of the paper book filed. It is submitted that the assessee-company purchased raw Jute from four different companies. All these four companies were summoned by the Assessing Officer and they complied with those summons and affirmed their transaction with the assessee-company. The raw Jute was ultimately sold by the assessee to Dalhousie Jute Co. Ltd. It is an admitted fact that the raw Jute was lying in the godown rented by seller companies from Dalhousie Jute Co. Ltd. and the raw Jute was directly delivered by said four seller companies to the Dalhousie Jute Co. Ltd. under the advice and instructions of the assessee-firm. 11. As regards ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td. 13. As regards payment, it is submitted that the assessee-firm received the payment from Dalhousie Jute Co. Ltd. by an account payee cheque drawn on 31-3-1984. This cheque was handed over to the assessee-firm after the close of the banking hours on that day. Since the cheque was received on 31-3-1984, the assessee-firm credited the account of Dalhousie Jute Co. Ltd. with the sale consideration on that very day and accordingly, no dues appear as receivable from Dalhousie Jute Co. Ltd. in the balance sheet of the assessee-firm as on 31-3-1984. However, it was explained that Dalhousie Jute Co. Ltd. recorded the payment of this amount only on 2-4-1984, the first of April being holiday and it was their practice to record payments after the close of Banking hours only on the next opening day. It was submitted that this position was explained by the authorised representative of the Dalhousie Jute Co. Ltd. when he appeared before the ITO in response to summons under section 131 of the IT Act. In this view of the matter it is submitted that the transactions are all genuine and the CIT(Appeals) is justified in directing to allow the loss on account of purchases and sales of raw jute. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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