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2020 (12) TMI 869 - AT - Income TaxTrading Loss - Loss in share business stated to be carried out in proprietorship concern namely M/s B.K. Sheth Trading Co. - The loss stem from decrease in market value of two stocks i.e. M/s Great Eastern Shipping Co. Ltd & M/s Prime Securities Ltd. held by the assessee on the Balance Sheet date - scrips were converted into stock-in-trade of the proprietorship concern in earlier AYs 1994-95 & 1995-96 - HELD THAT:- Inactivity or lull in the business of the assessee for some years cannot conclusively dislodge the claim of the assessee that it was carrying on the business of trading in shares - the valuation of stock-in-trade was in conformity with the method of valuation of stock in trade that was consistently followed by the assessee. Therefore, the claim on account of fall in value of scrips was well in order. We find that similar are the facts in this year. There being nothing contrary on record, respectfully following the earlier view of Tribunal, we hold that the trading loss on account of fall in value of scrips was an allowable trading loss Income from House Property- ALV determination - estimation of ALV on the basis of notional interest - CIT(A) agreeing that notional interest could not be adopted as ALV of the property - HELD THAT:- CIT(A) has rightly concluded that estimation of ALV on the basis of notional interest could not be upheld in the eyes of law. However, the same time, the findings that the property would not be subjected to Rent Control Legislation is bereft of any evidence on record. The income so earned notwithstanding the nomenclature of rental / lease rental or license fees, all are assessable under the head Income from House Property and subjected to similar computations. No difference has been carved out in law in all these different streams of income. The assessee nowhere denied the applicability of Rent Control Act to the stated stream of income. Therefore, the facts of the case are squarely covered by the earlier decision of the Tribunal in assessee’s own case for AYs 1996-97 & 1997-98. There is no change in material facts. No contrary decision is on record. Nothing has been shown that the aforesaid decision of the Tribunal has ever been reversed or not applicable, in any manner. Therefore, respectfully following the consistent stand of the Tribunal, we are inclined to quash the directions given by Ld. CIT(A). The additions, thus made by Ld.AO, stand deleted. Levy of interest u/s 234A, 234B & 234C - HELD THAT:- As Counsel submitted that the return of income was filed within time and therefore, there would be no question of levy of interest u/s 234A. Errors have also been pointed out in the computation of interest u/s 234B, 234C. In this regard, it would suffice on our part to direct Ld. AO to recompute the income of the assessee in terms of our above order and levy interest only in accordance with law. This ground stand allowed for statistical purposes.
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