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2015 (10) TMI 391 - AT - Income TaxTreatment to loss on account of repossessed vehicles as revenue loss - Held that:- The claim of the assessee for the said receipts should be treated as revenue receipts is proper as re-possessed vehicles/ assets are treated as stock-in-trade throughout the earlier years and the same was accepted by the Department in the earlier years. Thus Ld. CIT(A) has taken a correct view and directed the AO to treat the said loss as revenue loss. In light of this, the A.O. is directed to treat the said loss as a revenue loss in respect of the re-possessed vehicles that have been resold. - Decided against revenue. Treatment to loss - set-off of loss - whether CIT(A) erred in not appreciating that the shares, sale whereof had given rise to a loss, had been held as stock in trade of the appellant and hence the loss on that account had to be treated as a business loss? - Held that:- It can be seen that the contentions of the DR in respect of Section 73 of the Act cannot be sustained as the same stand was not taken by the Assessing Officer while passing the Assessment Order and the said plea was not raised before the CIT(A) as well. The Hon’ble Supreme Court in case of Cocanada Radheswami Bank Ltd. (1965 (4) TMI 11 - SUPREME Court) clearly held that the income from the securities which formed part of the assessee’s trading assets was part of its income derived from the business and, therefore, the loss incurred in the business in the earlier year could be set off against that income in the succeeding year. As per guidelines issued by the RBI, every NBFC is required to maintain liquid assets including investment in shares, stocks, government securities etc. and thus the assessee has made these investments in the ordinary course of its business. Therefore, loss in the said investment relates to the business. - Decided in favour of assessee.
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