TMI Blog2019 (1) TMI 1762X X X X Extracts X X X X X X X X Extracts X X X X ..... or business loss is only put in the revenue filed in connection with the business operation. Substance in the actions of the authorities below and concur with the views so taken by the authorities below that the loss in question cannot be allowed as a bad debts or business loss. Having said that, however, we see merits in the plea of the learned counsel that once it is not in dispute that loss has indeed incurred even if it is not in the revenue field or bad debts, the same should be considered by the AO for being allowed in the capital filed. AO having rejected the case of the assessee for the loss in the revenue field, it is only corollary thereto that as long as it is a genuine loss, as undisputed facts of the present case clearly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the assessee has claimed bad debts of ₹ 48,00,000/-. It was further found that the bad debts is claimed in respect of claim of certain shares through M/s. Pravin Ratilal Shares Stock Brokers Pvt Ltd as the broker had not paid the sale proceeds to the assessee. It is also not in dispute that these shares were held as investments and that the assessee is also engaged in the business of dealing in shares, mutual funds etc. The short explanation given by the assessee, as apparent from the assessment order, was that since the entries on sales were routed through P L accounts, it has fulfilled the requirements under Section 36(2). Not satisfied with the explanation so given by the assessee at the time of assessment proceedings, the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant, after deducting the cost of investment in respect of shares sold the profit has been credited to P L A/c. Therefore, the amount of claim of bad debt has been credited to the P L A/c of the respective year. The A.O. on analysing the computation of income for A.Y.1999-2000 and 2001-02 has observed that the entire amount credited in the P L A/c as other income is under sub-head profit on sale of shares. In all the three years the appellant has declared LTCG, STCG and has claimed the same as capital gains. The AO also observed that such amount (claimed as bad debt were never reflected in the business income) and transaction with the share broker were for investment for which income/loss were offered under the head 'capital gai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal that capital loss cannot be claimed as deductible as business loss. Accordingly, the addition made on disallowance of bad debt written off of s. 48 lacs is hereby confirmed and the ground off appeal is dismissed. 5. The assessee is not satisfied by the stand so taken by the CIT(A) and is in further appeal before us. 6. We have heard the rival contentions, perused the material on record and duly considered facts of the case in the light of the applicable legal position. 7. The short ground on which Mr. Soparkar, learned Sr. Advocate has justified the plea of the assessee is that the entries on sales were routed through P L Account. The amount was offered for tax. Mr. Soparkar, however, fairly submits that, in case whatever ..... X X X X Extracts X X X X X X X X Extracts X X X X
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