TMI Blog2015 (9) TMI 647X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee, therefore, we have no option but to confirm the conclusion drawn by the ld. Commissioner of Income Tax (Appeals) - Decided against assessee. Disallowance of loss on revaluation of securities - Held that:- There is uncontroverted finding in the impugned order that the assessee could not produce any evidence for substantiating its claim of proving that it was held as stock in trade. These investment were shown in the category of investment only in the balance sheet to comply with schedule-6 of the company Act. Thus, we find no infirmity in the conclusion of the ld. Commissioner of Income Tax (Appeals). - Decided against assessee. Disallowance of accrued interest on overdue lease rentals - Held that:- Totality of facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lusion arrived at in the impugned order by contending that right from assessment stage, the assessee did not produce any evidence in support of its claim. 2.1. We have considered the rival submissions and perused the material available on record. The facts, in brief, are that the assessee is a finance company wholly owned subsidiary of Bank of India. HPCL was the client of the assessee under portfolio management scheme. The assessee received ₹ 20 crores on PMS account from Hindustan Petroleum known as PMS HP. Out of these funds, ₹ 2,50 lakhs was invested in private placement for subscribing the right shares issue of cement corporation of Gujarat ltd. as advanced subscription on 22/12/1989. The right issue was opened on 02/01/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Even before us, no evidence was produced by the assessee, therefore, we have no option but to confirm the conclusion drawn by the ld. Commissioner of Income Tax (Appeals), consequently, the stand of the ld. First Appellate Authority, on the issue in hand, is affirmed. 3. The next ground raised by the assessee pertains to disallowing the loss on revaluation of securities amounting to ₹ 7,48,614/-. The crux of argument is that the assessee itself treated the securities in stock in trade and provided the impugned loss in its books of accounts, thus, the ld. Commissioner of Income Tax (Appeals) ignored the fact that profit arising on sale of such securities are taxed as business income by the Department, itself proves that the securiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re of investment or stock-in-trade. Whereas assessee could produce no other evidence before the A.O. to prove that it is stock-in-trade except that it is claimed that the profit on such transactions on sale of the securities is offered as business profit year after year and also produced a chart as per which depreciation is calculated for entry in the books of account. Whereas these investments are shown in the category of investment in the Balance Sheet for which assessee has claimed that such classification is merely to comply with the Schedule 6 requirement of Companies Act. Therefore, assessee has not produced sufficient evidence before the A.O. Hence, following the directions of Hon ble ITAT the A.O. has rightly disallowed the claim of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leaded by the ld. counsel for the assessee that in subsequent years, the penal interest was accounted for whenever receive. On earlier occasion, the matter was remanded back to the file of Assessing Officer with a direction that the assessee shall produce the basis for waiving of such interest. There is uncontroverted finding in the assessment order as well as in the impugned order that the assessee could not produce any agreement or basis and merely claimed that it was waived on case to case basis. In these circumstance, the Assessing Officer added the penal interest to the income of the assessee. Identical is the situation before the ld. Commissioner of Income Tax (Appeals). The relevant finding recorded in the impugned order are reproduc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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