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2015 (4) TMI 843 - HC - Income TaxBusiness of advancing money and cash - capital asset v/s stock-in-trade - Tribunal held that the assesse was not engaged in the business of advancing loans and that money and cash was not its stock-in-trade was perverse and contrary to materials on record and based on irrelevant materials and considerations - Held that:- Copy of the 23rd Annual Report consisting of the statement of accounts of the financial year 1993-1994 from which it appears that the available funds of the company/assessee was about ₹ 11,23,00,000/- consisting of a sum of ₹ 5.56 crores on account of capital and reserve and the balance sum of ₹ 5.67 crores consisting of loans both secured and unsecured. Out of the aforesaid sum about ₹ 2.55 crores were invested in fixed assets comprising of furniture and fixture, office equipment, motor car, equipments given on lease, heavy vehicles given on lease, bottles given on lease and a scooter, about ₹ 52 lakhs were invested in shares and debentures, about ₹ 3.67 crores is invested in inventories consisting of investment in shares and hire purchase transactions; about a sum of ₹ 1.46 crores is receivable on account of lease, hire purchase and others, and a sum of ₹ 5.45 crores were invested in loans and advances both secured and unsecured, part of which has also been lent to the subsidiary referred in the judgment of the learned Tribunal. From the aforesaid application of funds it cannot be said that the principal business of the assessee is borrowing and lending money. Therefore, the view taken by the learned Tribunal is a possible view and by no means is perverse. - Decided in favour of assessee.
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