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2023 (11) TMI 865 - HC - Income TaxNature of loss - Loss on sale of loans - whether the loss incurred was on capital or revenue account? - as per revenue right to receive money is a capital right as the assessee is not in the business of trading of loan portfolio - ITAT deleted the addition - HELD THAT:- Tribunal, in its order for the AY in issue i.e., 2010-11, has extensively extracted its decision in [2016 (8) TMI 1202 - ITAT DELHI] AY 2004-05, which had concluded that the assessee’s right to receive money from its debtors, on account of financing of assets, accrued to the assessee in the ordinary course of business and was not in the nature of ‘capital’ receipt. The record shows that for the AY in issue i.e., 2010-11, the respondent/assessee had entered into an agreement with Shriram for the sale of financial receivables, having an aggregate book value of Rs. 10,11,71,94,000/-, for a consideration amounting to Rs. 9,08,29,87,000/-. As noticed above, the loan portfolio was sold to Shriram. The record shows that there is no dispute concerning the fact that the loan portfolios, concerning forty-five thousand (45,000) borrowers, had been sold to Shriram, and therefore, the difference between the figures [the difference between the value of the financial receivables and consideration received from Shriram] was sought to be claimed by the respondent/assessee as ‘loss’ on revenue account - proposed question no. “B” does not arise from the orders passed by the statutory authorities. Whether the liability had, in fact, crystallized in the period in issue? - Tribunal, after examining the assignment agreement executed between the respondent/assessee and Shriram, has returned a categorical finding of fact that the liability indeed arose in the period in issue, as indicated in paragraph 38 of the Tribunal’s order extracted hereinabove. Appellant has not proposed any question of law to the effect that this finding is perverse. Therefore, on this score as well, we are not inclined to entertain the appeal, and the appeal is, accordingly, closed.
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