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2014 (12) TMI 846 - HC - Income TaxLoss incurred on sale of shares business loss or not - Whether the Tribunal was justified in holding that the loss incurred on the sale of shares of Camelot a wholly owned subsidiary was a business loss when the investment made in the latter was not a business asset, but investment for obtaining an enduring benefit – Held that:- The Commissioner and the Tribunal concurrently found that the Camelot was fully owned subsidiary of the assessee and engaged in the manufacturing of tooth brushes exclusively for the sole client namely the assessee - Shares purchased of Camelot were also sold by the Assessee to one Ramesh Sukharam Vaidya for consideration of ₹ 45,00,000/- merely because it was made in the normal course of business, it cannot be termed as anything but long term investment - since the Assessee was relying on Camelot for manufacturing of tooth brushes to be traded by the assessee, the investment is nothing but a measure of commercial expediency to further business objectives and primarily related to the business operations of the Assessee - at no point of time the investment in Camelot was made with an intention to realize any enhancement value thereof or to earn dividend income - the investment was made to separately house the integral part of the business activity – thus, the loss of ₹ 5.50 crores is a business loss in the hands of the Assessee – the order of the Tribunal is upheld – Decided against revenue.
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