New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (4) TMI 554 - CALCUTTA HIGH COURT

2015 (4) TMI 554 - CALCUTTA HIGH COURT - [2015] 373 ITR 243 (Cal) - Determination of nature of business - where loss resulting out of dealing in shares is more than the income arising out of loans and advances it can be said that the principal business of the assessee is not of granting loans and advances in the light of explanation appended to Section 73 of the Income Tax Act - Held that:- Income and business activity, according to the legislative mandate, are distinguishing factors. Therefore .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the principal business of the company/assessee is granting loans and advances as would appear from the volume indicated in the chart above for a number of years. Therefore, the view taken by the learned Tribunal appears to be the correct view of the matter. - Decided in favour of assessee. - ITA 132 of 2007 - Dated:- 19-3-2015 - Girish Chandra Gupta And Arindam Sinha JJ. For the Appellant : Md. Nizamuddin, Mr. N.K. Poddar For the Respondent : Mr. N.K. Poddar,Mr. V. Tibrewal, ORDER The Court :- T .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

, 1961. After the appeal was taken up for hearing both the learned counsel suggested that the question formulated at the time of admission should be reframed. After hearing them the question, to be decided, has been reformulated as follows : Whether in a case where loss resulting out of dealing in shares is more than the income arising out of loans and advances it can be said that the principal business of the assessee is not of granting loans and advances in the light of explanation appended to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

3 Rs.75,41,281/ Rs.78,21,578/ Comparative Statement of Income : Business Y.E.31.03.1999 Y.E.31.03.2000 Y.E.31.03.2001 Y.E.31.03.2002 Y.E.31.03.2003 Y.E.31.03.2004 Interest on loans Rs.17,458/ Rs 1,61,115/ Rs.9,27,247/ Rs.19,48,288/ Rs.20,95,789/ Rs.31,73,340/ Commission and brokerage in third party financing Rs.92,596/ Rs.5,05,254/ Rs.4,21,840/ Rs.2,96,010/ Rs.1,75,407/ Rs.2,39,293/ Other commission Rs.11,04,270/- Share trading (-)32,31,303/- (-)13,70,155/- (-)13,62,042/- Rs.12,67,223/- We are c .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

uld depend upon the profits earned during the relevant year. Profits were earned only from the loans and commission and brokerage. There was no profit earned from the dealings in shares. Therefore he submitted that the principal business of the assessee is granting of loans and advances and not dealing in shares. Mr. Poddar, learned Senior Advocate drew our attention to the Explanation appended to Section 73 of the Income Tax Act which reads as follows :- Explanation: Where any part of the busin .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version