TMI Blog2013 (5) TMI 910X X X X Extracts X X X X X X X X Extracts X X X X ..... Head Capital Gain and cannot be assessed as business income of the assessee's bank. The assessee is the Co-operative Bank. The assessee's bank has purchased a plot of land on 28th March, 2002 for a total consideration of ₹ 3,66,69,660/- which was admittedly reflected in the Balance Sheet under the head Fixed Asset . The said plot was purchased for construction of the building, but due to poor economical conditions, the Board of Directors decided to sale of the same. The assessee credited the profit on sale of the land to the profit and loss account but in computation the assessee separately shown as a Long Term Capital Gain. 3. The assessee sold the said plot on 18-01-2008 for the gross sale consideration of ₹ 4,44,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Nashik Municipal Corporation area admeasuring total area 11128.56 Sq. Mtrs on 28-03-2002 at the cost of 3,66,69,660/- including stamp duty and registration charges etc. The said plot of land was purchased for construction of Administrative Building (HO) but due to poor economical conditions, the assessee dropped the idea of going with the said project and finally the plot was sold out on 18-01-2008. The assessee worked out the Long Term Capital Loss at ₹ 8,01,303/- after availing the benefit of indexed cost of acquisition by treating said plot as Long Term Asset which was held for more than 36 months. We find that in the computation statement along with the return of income, the assessee claimed the said plot as Capital Asset but t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ins to earlier year. The facts which are revealed from the record as under. There was misappropriation of cash of ₹ 22,00,000/- by Bank staff in the year 2004. The assessee bank registered FIR with the Police by filing the Complaint no. 158 of 2004. The assessee bank also filed the case in the Co-operative Court for recovery of the said amount being Case no. 340/04 on 02-07-2004 and the said case is still pending and amount is not yet recovered. The said amount was reported to the RBI on regular basis. The assessee bank claimed the same as a bad debt during the year. The Assessing Officer referred to the decision of the Hon'ble High Court of Bombay in the case of Associated Banking Corporation of India Ltd. Vs. CIT 40 ITR 210 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble High Court of Bombay has considered when the loss from the embezzlement can be allowed. In the said case the assessment year involved was 1975-76. In the year 1976, the said assessee suspected the commission of a fraud by two of its principal officers. The matter was referred to a Detective Agency which submitted its report in the February, 1977. It was found that during the relevant previous year these employees had embezzled or misappropriated goods worth ₹ 6,54,777/-. It was done by manipulating the accounts and as a result, the aforesaid goods were neither reflected in the closing stock nor as goods in transit. The said fact was came to the notice of the management but only after the appointment of the Detective Agency ..... X X X X Extracts X X X X X X X X Extracts X X X X
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