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2016 (11) TMI 728 - SC - Income TaxAddition of the licence fee paid - HC deleted the addition - Held that:- The licence fee stands forfeited, the licencee/assessee may be entitled to claim the forfeited amount as a business loss. However in the present case, from the grounds urged before the High Court which facts have not been controverted by the assessee, it appears that the respondent had transferred the licence on June 25, 2005 to one Shankarlal Patidar and the forfeiture of the said licence took place thereafter on August 1, 2005. If that be so, the loss, if any, on account of forfeiture was sustained not by the respondent-assessee but by the transferee-Shankarlal Patidar. In view of the above and as the learned Tribunal and the High Court have overlooked the aforesaid vital fact, we are of the view that the orders passed by the learned Tribunal and the High Court will require to be reversed by us. Consequently, we set aside the order of the High Court affirming the order of the learned Tribunal and the learned Commissioner of Income-tax (Appeals) passed in favour of the assessee and affirm the order of the Assessing Officer disallowing the aforesaid claims of the assessee. - Decided against assessee
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