Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2011 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (9) TMI 1076 - AT - Income TaxBusiness loss u/s. 28 - Held that:- We observe that assessee has made the analysis of the situation and only after arriving to the conclusion that stock had become worthless/amount was not recoverable and thereafter the business decision had been taken by the assessee to write off of the same in the assessment years under consideration. We observe that Department has not disputed the observation of Ld. CIT(A) that assessee company is consistently following the Accounting policy of writing off of the share lost and also writing back the recoveries of share lost over the period. Considering the above facts and in the absence of any contrary material brought on record by department, we are of the considered view that orders of Ld. CIT(A) is justifiable for both assessment years under consideration. Therefore we uphold the same by rejecting the grounds of appeal for assessment year 1999-2000 and grounds No. 1 &2 of appeal for assessment year 2000-01. Disallowance of penalty paid to Stock Exchange - Held that:- In the case of Master Capital Services Ltd. Vs DCIT (2007 (2) TMI 241 - ITAT CHANDIGARH-A) wherein it was held that fine paid for delay in making delivery of shares due to deficiencies in the documents like non-matching of signatures etc. cannot be considered as penal in nature. It was held that fine paid on account of irregularities cannot be considered payment which is penal in nature. But it is the payment due to irregularities and is in the regular course of business. Hence the same is allowable. The said payment paid by assessee is not on account of violation/infraction of statutory law but is only on account of irregularities committed by assessee in the regular course of its business. Hence the same is allowable as revenue expenditure to the assessee.
|