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2013 (6) TMI 247 - AT - Income TaxDiminution in the value of the shares - disallowance of the expenditure - Held that:- It is not in dispute that the assessee has made investments in another company i.e. M/s. Flexcel International Pvt. Ltd and has invested a sum of Rs. 54,28,500/-. Plea of the assessee that due to sharp decline in the value of its investments, the value of shares have diminished substantially, therefore the same should be allowed as business expenditure cannot be accepted because it is not supported by any precedence. Undisputedly, the assessee has made investments and it is only the value of its investments that have fallen down which is nothing but a notional capital loss. That being the fact of the matter it cannot be allowed as Revenue expenditure. Against assessee. Addition on the basis of TDS certificate - Held that:- The whole dispute revolves around whether the assessee has shown the impugned sale in its earlier years return. It is the say of the lower authorities that the assessee has not filed necessary details whereas it is the contention of the assessee that the Revenue authorities did not appreciate the facts of the case properly. In the interest of justice and fair play, this issue needs further verification in the light of the documents submitted by the assessee before us. The assessee is directed to substantiate its claim by filing necessary documentary evidences before the AO. In favour of assessee for statistical purposes. Liability for Fringe Benefit tax - Held that:- In the light of the legislative intent for bringing FBT in statute, the expenditure incurred by the assessee cannot be termed as expenditure on staff welfare inviting the deeming provision of FBT. The expenditure incurred by the assessee is a one-time affair and is not in the nature of recurring expenditure and therefore cannot be said to be out of consideration for employment. Therefore, no merit in levying FBT on such expenditure. In favour of assessee.
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