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2012 (6) TMI 444 - KARNATAKA HIGH COURTValuation of Shares – Revenue contented against the ITAT Order the shares held by the assessee at the end of the year should be valued as per market rate and the consequential loss should be allowed as a business loss – Held that:- The assessee carrying on the business in sale of shares held to be stock-in-trade and not by way of investment – as the value of stock-in-trade is reduced because of market conditions as the said shares were held as stock-in-trade, the assessee suffered a loss in the business and therefore the assessee was entitled to claim business loss - The valuation of stock is cost or market value whichever is lower is settled position of law – in favour of assessee. Accounting of interest received on loans and advances – to be on receipt basis or accrual basis as per the regular mercantile system of accounting maintained by the assessee – Held that:- The interest on which the tax is levied is an income shown to be due from non-performing asset and once a particular asset is shown to be a non-performing asset then the assumption is that it does not yield any revenue - If it is not yielding any revenue, the question of showing that Revenue and paying tax would not arise - unless that amount is received no tax is payable - in favour of the assessee
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