2015 (4) TMI 843

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..... eal is a judgment and order dated 31st January, 2003 passed by the learned Income Tax Appellate Tribunal pertaining to the assessment year 1996-1997. The assessee has come up in appeal. At the time when the appeal was admitted the following questions were formulated. " 1) Whether on the facts and circumstances of the case the Tribunal was justified in holding that for the purpose of business of a .....

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..... ther on the facts and in the circumstances of the case the finding of the Tribunal that the cash procured by issue of share capital could not be held to be conversion of Capital into stock-in-trade was justified in law and not perverse ? Mr. Murarka, learned advocate, appearing in support of the appeal submitted that the question nos. 3 and 4 as the questions themselves would suggest are dependen .....

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..... income groups. The report projected confidence that the company would make reasonably good profits in the aforesaid building projects. In the light of these facts on record, the contention advanced on behalf of the assessee that it is mainly engaged in the business of advancing loans and the cash generated by way of enhancement of share capital is its stock-in-trade does not deserve serious consi .....

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..... trade. The learned Tribunal has repelled the contention that the money was its stock-in-trade. Mr. Murarka submits that the aforesaid finding is perverse. We are unable to accept his submission. Mr. Murarka has made over to us a copy of the 23rd Annual Report consisting of the statement of accounts of the financial year 1993- 1994 from which it appears that the available funds of the company/asse .....

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..... which has also been lent to the subsidiary referred in the judgment of the learned Tribunal. From the aforesaid application of funds it cannot be said that the principal business of the assessee is borrowing and lending money. Therefore, the view taken by the learned Tribunal is a possible view and by no means is perverse. Therefore, the question no.2 is answered in the negative. The question no .....

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