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TMI Blog2004 (3) TMI 312X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 3556/Ahd/1992 for asst. yr. 1989-90 in assessee's own case vide its order in para Nos. 8 & 8.1 by observing as under: "8. We have carefully considered the facts, material on record and rival submissions. We find from the copy of account of Karnavati Auto Ltd. that an amount of Rs. 28.61 lakh was advanced to Karnavati Auto Ltd. during the accounting year relevant to the asst. yr. 1988-89 and no disallowance of interest on account of such interest-free loan advanced was made by the Revenue in the asst. yr. 1989-90. During the current assessment year no fresh interest-free loans were advanced to Karnavati Auto Ltd. as is evident from the copy of account placed at p. 34 of the compilation. 8.1 We also note from the balance sheet of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... B of Rs. 51,88,896. During the course of hearing, the learned counsel submitted that the issue in controversy is covered by the decision of Tribunal Ahmedabad Bench "B" in ITAT No. 3877/Ahd/92 for asst. yr. 1989-90 wherein it has been held as under: "13. The last ground raised by the Revenue is against allowing the claim of custom duty included in the value of the closing stock under s. 43B of the IT Act. The learned counsel for the assessee at the outset submitted that the issue stands covered in favour of the assessee by the Tribunal order dt. 2nd Dec., 1996, in ITA No. 5174/Ahd/1991 in assessee's own case for the asst. yr. 1988-89 based on the earlier order of the Tribunal dt. 10th Sept., 1996, in ITA No. 2084/Ahd/1991. He also submitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es" as per Expln. (2) to s. 37(2A) of the IT Act. However, in the absence of separate records for such expenditure, the claim of the assessee cannot be verified. Nevertheless, considering the volume of business of the assessee and the total amount incurred on lunch, dinner, breakfast, hot drinks, soft drinks, etc., the estimate of Rs. 75,000 made by the assessee as the amount incurred on entertainment appears to be too low. The AO has estimated the entertainment expenditure of Rs. 2 lakhs and disallowed the same. The CIT(A) has restricted the expenses to Rs. 1,25,000. The CIT(A) has observed that no separate account has been maintained by the assessee in respect of expenses incurred for staff members as well as for the outsiders. The assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of hearing, the learned Departmental Representative submitted that as per the decision reported in Soma Textiles & Industries Ltd. vs. Dy. CIT (2003) 81 TTJ (Ahd) 1002 : (2003) 87 ITD 326 (Ahd), the Hon'ble High Court (sic-Tribunal) after examining the same issue of short-term capital loss on sale of units of UTI within a short period coupled with exemption of dividend under s. 80 reached to the conclusion that short-term loss on capital is rightly disallowed by the Revenue authorities and the CIT(A) is not justified in allowing the same. 9.1 The learned Authorised Representative submitted that as per the decision of Hon'ble Tribunal and as per the amendment in s. 94(7) which reads as under: "(7) Where- (a) any person buys or acquires an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the section has come into effect from 1st April, 2002, but as per the decision reported in Ahmedabad Tribunal in speculation business, it is the duty of assessee to show the actual delivery of the units and transfer to assessee' name. The learned Departmental Representative submitted that the units were not transferred in the name of assessee and, therefore, no short-term capital loss may be allowed. 11. The learned Departmental Representative relied upon the order of CIT(A) and submitted that the issue in controversy is covered by the decision reported in the case of Union of India & Anr. vs. Azadi Bachao Andolan & Anr. (2003) 184 CTR (SC) 450 : (2003) 263 ITR 706 (SC). 12. We have heard the parties and considered the rival submissi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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