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2011 (10) TMI 494 - ITAT, CHENNAIRevision u/s 263 - business loss which comprised of professional charges, bank charges, etc. ought not have been allowed since it did not relate to any business activities - Held that:- No doubt, assessee might have shown the shares held in BPL Communications Ltd. under the head "Investments" however, nomenclature given in the balance sheet alone will not be sufficient to come to a conclusion that the shares were held as investments. In the previous year relevant to assessment year 2005-06, not only had it sold shares acquired during assessment year 2004-05, but had also made further acquisition of 49,97,69,241 shares of BPL Communications Ltd. for a sum of Rs. 7 Crores. These shares were sold during previous year relevant to impugned assessment year viz. assessment year 2006-07. Hence, the claim of assessee that it did not indulge in trading in shares does not hold any water. The shares of BPL Communications Ltd. were acquired based on an agreement with one M/s Suryasamudra Finance and Investments Pvt. Ltd. and the said agreement dated 1.7.2004 though produced before Assessing Officer, was never examined by him. Said agreement was filed without the annexures relevant thereto and this finding of CIT has not been rebutted by the assessee. Conclusion of CIT that through the said agreement, not only had the assessee acquired shares of BPL Communications Ltd. but had also taken over receivables and liabilities of M/s Suryasamudra Finance and Investments Pvt. Ltd. has not been disputed by the assessee. There has been a total non-examination of the issue as to whether the assessee was indulging in any business activity by trading in shares or whether it was engaged in a business of buying and selling investment. An order without application of mind is definitely prejudicial to the interests of the revenue. CIT was justified in invoking powers vested in him u/s 263 - Decided in favor of Revenue.
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