TMI Blog2017 (8) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... e ratio of the decision of this Court in CIT v. Pasupati Spinning Weaving Mills Ltd. (2015 (11) TMI 385 - DELHI HIGH COURT) squarely covers to this appeal and the only question framed in this appeal is accordingly answered in the negative i.e. against the Revenue and in favour of the Assessee. It is held that the ITAT did not error in deleting the addition on account of “amount transferred to capital reserve." - ITA 171/2017 - - - Dated:- 25-7-2017 - S. Muralidhar And Prathiba M. Singh, JJ. For the Appellant : Mr. Ruchir Bhatia, Senior Standing Counsel For the Respondent : Mr. Ajay Vohra, Senior Advocate with Ms. Kavita Jha Ms. Roopali Gupta, Advocates ORDER 1. This is an appeal by the Revenue under Section 260A of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tock written off. The question of whether the assessee's business continued or not, did not in such circumstances, arise for consideration. Admit the appeal so far as the following question of law is concerned: - Whether the ITAT erred in deleting the addition of ₹ 22,90,00,000 made by the Assessing Officer on account of 'amount transferred to: capital reserve' ignoring the fact that the said amount was a revenue receipt in the hands of the assessee and therefore the provision of Section 41 (1) of the Act was applicable? Issue notice of appeal to the respondent/assessee, returnable on 17th July, 2017. Notice be issued dasti in addition. 3. Thereafter, when the matter was heard on 17th July, 2017, Mr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for purchasing fixed assets. This was further supported by copies of the audited balance sheet as at 31st March 2000 and 31st March 2001. He has also placed before the Court a copy of the audited balance sheet and Profit Loss account (P L Account) for the financial year 2006-07 evidencing that the waived off amount has been credited to capital reserve and the interest amount has been written off in the P L Account. 8. Consequently, the ratio of the decision of this Court in CIT v. Pasupati Spinning Weaving Mills Ltd. (supra) squarely covers to this appeal and the only question framed in this appeal is accordingly answered in the negative i.e. against the Revenue and in favour of the Assessee. It is held that the ITAT did not err in del ..... X X X X Extracts X X X X X X X X Extracts X X X X
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