TMI Blog1989 (11) TMI 315X X X X Extracts X X X X X X X X Extracts X X X X ..... . against the allotment of shares of the face value of ₹ 9.15,900 by the said company to the assessee ? 2. The assessment year involved in this reference is the asst. yr. 1975-76, for which the relevant period of account is the period ending on 19th April, 1975. The facts of the case found by the Tribunal as stated in the statement of case are as under : The assessee-lady (since deceased) was being assessed as individual. Her accounting period for the asst. yr. 1975-76 ended on the 19th April, 1975. She has been keeping books of account according to which net profit worked out to ₹ 1,47,542. While filing her return of income for the aforesaid assessment year, the assessee claimed apart from losses and expenses debited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s per provision of law are totally absent in assessee's case. The assessee is not a money-lender and she had no moneylending licence. She earned interest from deposit only. Hence, the question of allowance of bad debt, if any, does not arise. The assessee appealed against the aforesaid order to the CIT(A), who accepted the assessee's appeal with regard to the addition made by the ITO of ₹ 6,82,368. According to him, the said interest had not been received by the assessee and that receipt of the promissory note by the assessee did not amount to receipt of interest. The original claim of bed debt, which was put forward by the assessee before the ITO, was converted into one of business loss before the learned CIT(A). This clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assets already shown and taxed as such. It may, however, be pointed out that the assessee was not carrying on any business and in any case if the market value of the shares is found to be less than the actual assets for which those shares were acquired, she would not be entitled to claim any business loss since it would amount to only an exchange of capital.... The Revenue was not aggrieved by the Tribunal's order, by which the case was remanded for finding out the intrinsic value of the shares and proceed on the basis of such valuation. When the case went back to the CIT(A), he passed an order to the following effect: ....I have looked into the computation of break-up value of such shares for the relevant assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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