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Issues:
1. Deduction under section 80M of the Act without considering relief under section 80K. 2. Claim of long-term capital loss on the sale of shares of M/s. Sarayu Investments Pvt. Ltd. Analysis: 1. The appellant raised a ground regarding entitlement to deduction under section 80M without considering relief under section 80K. The counsel referred to a Special Bench decision but stated the appeal was filed to keep the matter alive. The tribunal found no reason to interfere with the CIT(A) order and rejected the relevant ground in the appeal. 2. The main issue was the claim of long-term capital loss on the sale of shares of M/s. Sarayu Investments Pvt. Ltd. The ITO rejected the claim as non-genuine, citing lack of reasons for the sale and considering it a colorable device to evade tax. The CIT(A) upheld this decision. The appellant argued the transaction was genuine, supported by a valuer's report, and in the interest of the business. They also challenged the tax authorities' observations and highlighted the non-declaration of dividends by the company. The tribunal examined the submissions, perused the orders, and considered the valuer's report. They found the loss genuine, supported by valid reasons for the sale, and criticized the tax authorities' approach. The tribunal concluded the sale was genuine, directing the department to accept it as such. As a result, the relevant grounds in the appeal were accepted, and the appeal was partly allowed.
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