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2018 (6) TMI 275 - AT - Income TaxDisallowance of loss on sale of shares of associated concern - speculation loss - Held that:- The loss is not speculative loss in terms of explanation to section 73 as the assessee is not engaged in the sale and purchase of shares of other companies - Following the judgement in case of CIT VERSUS STANDIPACK PVT LTD [2012 (10) TMI 131 - CALCUTTA, HIGH COURT] wherein it has been held that only the loss resulting from the activity of sale and purchase of shares of other companies which is a part of the business of the assessee could be treated as speculation loss - the ground of revenue is dismissed. Depreciation on intangible assets being “business and commercial rights” - compensation paid by the assessee to land owners for acquiring the mining rights in the land - Held that:- Following the decision of Hon’ble Delhi High Court in the case of Areva T AND D India Ltd. vs. DCIT & CIT vs. Jai Parabolic Spring Ltd. [2012 (4) TMI 79 we are of the considered view that expression “Business or commercial rights of similar nature” specified in section 32(1)(ii) of the Act, includes other intangible assets also which is not mentioned as it is not possible to specify each item - thus payment made by the assessee in the form of compensation for acquiring mining rights in the land is intangible assets and hence depreciation is allowed - the ground of revenue is dismissed. Addition being royalty paid in financial year 2001-02 - Held that:- A perusal of the order of appellate authority reveals that the assessee paid advance in the March 2002 in respect of the next financial year which was duly adjusted and claimed by the assessee in the assessment year 2003-04. The issue has been discussed at length by the Ld. CIT(A) and only thereafter allowed the appeal of the assessee. We, therefore, do not find any infirmity in the order of the Ld. CIT(A) Invisible loss in the raw material - Held that:- Percentage of yield and invisible wastage depend on several factors as has been mentioned hereinabove such as quality of cotton, fly generated during manufacturing process, moisture contents in the cotton etc. and the percentage of invisible waste cannot be standardized as the inputs in the textile division depends on the various factors - AO has not pointed out any defects and deficiencies in the books of account and simply relying on the percentage of invisible gain in the earlier year disallowed the invisible waste during the year which is not correct and can not be sustained. - Decided against revenue
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