Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2013 (5) TMI 910 - ITAT PUNE

2013 (5) TMI 910 - ITAT PUNE - TMI - ITA No.1499/PN/2011 - Dated:- 30-5-2013 - SHRI G. S. PANNU, ACCOUNTANT MEMBER AND SHRI R.S. PADVEKAR, JUDICIAL MEMBER Appellant By: Shri Pramod Shinghate Respondent By: Shri S. Praveena ORDER PER R.S. PADVEKAR, JM:- In this appeal, the assessee has challenged the impugned order of Ld. CIT(A)-I, Nashik dated 27-09-2011 for the A.Y. 2008-09. 2. The first issue is treatment of the profit/gain on sale of the land. This issue arises from Ground nos. 1 to 4. The co .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ding, 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 ₹ 4,44,00,000/-. The assessee declared capital loss of ₹ 8,01,303/- after deducting indexed cost of acquisition which is worked out at ₹ 4 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t/loss account was not reduced and the same may be reduced. The Assessing Officer has noted that as the gain/loss on the sale of the plot of land cannot be assessed under the Head Capital Gain and hence, there is no question for further reducing the profit included by the assessee in the total income pertaining to sale of the plot of land. 4. In sum and substance, the Assessing Officer rejected the claim of the assessee that profit/gain on sale of the plot is to be assessed under the Head Capita .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

gistration 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 computatio .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

It is not the case of both the authorities below that the assessee was holding that plot as stock-in-trade. Moreover, the balance sheet filed before us clearly shows that it was shown as a fixed asset. We therefore, hold that gain/loss on the sale of the plot of land is to be assessed under the Head Capital Gain and it cannot be assessed as a part of the profit of the trading activity of the assessee. We therefore allow the ground taken by the assessee and direct the Assessing Officer to assess .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

is the claim of the loss of ₹ 22,00,000/- due to embezzlement/cash shortage which pertains 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 i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

noted that the FIR was registered with Police on 17-06-2004 and case for recovery for the ex-employee was filed on 02-07-2004. It is therefore held that loss cannot be allowed as it pertains to the earlier year. The Ld. CIT(A) confirmed the action of the Assessing Officer. The Ld. CIT(A) referred to the CBDT Circular 35-D (XLPVII-20) (F.No. 10/48/65/-IT(A-I) dated 24-11-1965. The Ld. CIT(A) confirmed the disallowance made by the Assessing Officer. Now the assessee is in appeal before us. 10. We .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sessee could claim the loss. The only reason given by the assessee for claiming the loss is that till 2007 the said amount was shown in the sundry debtors and as per the direction of the RBI the amount was transferred to provision for bad and doubtful debts. 11. In the case of Bombay Forgings Pvt. Ltd. Vs. CIT 206 ITR 562 (Bom) the 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 .....

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