9911796707
TMI Blog1990 (3) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... arma Pictures (P) Ltd. . . . . Value of 485 Equity Shares as . . . . per last Balance . . . Sheet @ 40 . . 19,400 . Sold as under No. of Shares . . . Shri R.R. Sharma 165 6,500 . . Smt. Sunder Bai 150 6,000 . . Shri R.R. Sharma 85 2,500 . . Shri Raj Sharma 85 2,500 17,500 1,900 . 485 . . . Mathur Papers & Foils (P) Ltd. . . Value of 3,840 Equity Shares of Rs. 100 each. 3,84,000 . Sold to Mr. K.S. Suri @ Rs. 4 per share 15,360 3,68,640 Mathur Alloy Steels (P) Ltd. . . Value of 26,500 Equity Shares of Rs. 10 each 2,65,000 . Sold to Mr. D.B. Mathur @ Rs. 1/50 per share 39,750 2,25,250 . . Rs. 5,95,790 The assessee's case for claiming the loss to be a business loss is based o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laimed to be from business assets in 1979-80 asst. yr. One of the companies' shares were sold at a profit of Rs. 73,750 and this profit had been assessed at tax. The same year three other companies were sold at a loss of Rs. 1,20,230. During 1980-81 shares of two companies were sold which resulted in a loss of Rs. 6,24,890. Going to the years subsequent to the year under appeal it was submitted that in 1985-86 shares of one company were sold for a loss or Rs. 8,35,000 and in 1987-88 another company for a loss of Rs. 49,500. It was submitted that in the prior assessment years when the assessee had suffered a loss, they were not claimed as business loss because in those years, there was no profit to be taxed. In this assessment year, a plea h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder dt. 7th Sept., 1983 and referred to this activity in paragraph 2 of his order and the ITO himself in para 3 of his order accepted that the assessee had many other business activities of promotion of new ventures. Thus, once it is all accepted that the assessee has this activity, it is submitted the assessee would be eligible for treating the same as business loss. 6. Shri Bakshi for the Department pointed out that the books treated the investment in shares as investment simplicitor. If these are really business then there would not have been an interregnum in the completion of the project and selling of the shares. Besides, he submitted that the Tribunal had negatived the assessee's contention in the order for the asst. yr. 1978-79. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee had investigated 15 projects. Out of this, they found feasible only 9 projects. So the other 6 projects were already written off as dead loss. They had floated companies in respect of these 9 projects and had invested more than Rs. 30 lakhs thereon. The company Mathur Paper and Foils Ltd. had an authorised capital of Rs. 50 lakhs and an investment of Rs. 3.84 lakhs was made thereon. The entire shares have been sold. If the assessee's case was that the shares in company were their stock-in-trade then the assessee must have invested in all the subscribed shares of the company and sold all of them. But we do not have that material. We do not know whether the subscribed shares of this company were Rs. 3,84,400 or more. We do not kn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s account after writing off the balances in various sundry creditors' accounts. The details of the write off as given to the ITO show numerous small amounts. Many of them incurred as a liability in 1971-72 and still earlier years. On enquiries, we were told that these amounts were received as deposits from customers to whom the assessee had sold tractors. Apparently, the amount of deposit receipt was in excess of the price charged and the difference was remaining in the assessee's books of accounts. They now have been written back. The Commissioner had accepted the assessee's submissions that there was no cessation of liability by this unilateral write off. The Department is in appeal. 14. We agree with the Commissioner (A) that it dos not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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