TMI Blog2003 (1) TMI 227X X X X Extracts X X X X X X X X Extracts X X X X ..... nar Scooter amounting to Rs. 42,07,810 as business loss. The assessee claimed loss on transfer of shares of M/s Girnar Scooter as long-term capital in computation of income. However, in the notes accompanied with the computation of income, it has been claimed that same should be allowed as business loss because investment in M/s Girnar Scooters Ltd., was a trading investment. The AO found that the claim of the assessee is contrary to the facts disclosed by the balance sheet in the earlier years. In the balance sheet, it was disclosed as investment and the AO found that the amount received on such sales was credited in capital account. It is clear from the purchases and sales where shares were held as investments and hence, he rejected the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure scooters in Gujarat State as a division of GSIC as per resolution dt. 9th April, 1965. He has also pointed out that other material and facts which have been already dealt with by the CIT(A) at p. 3 of his order. 5. We have considered the rival contentions of the parties, perused records and gone through the orders of the lower authorities. Some admitted facts noticed by us are that as per the memorandum of association of the assessee-corporation, the main object of the company was to promote the interest of SSI Units in Gujarat State. The main object of the corporation was to help industrial concerns in various ways and help industrial growth of the State. From the facts on record, it is obvious that the Girnar Scooter Ltd. was float ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6,526, Rs. 15,64,919 are towards interest payment and the balance relating to establishment, purchases, bank charges, salaries and sales, etc. The CIT(A) further directed the AO to allow these expenses in computing the total income of the this year but the expenses relating to interest of Rs. 15,64,919 are not allowed as these were not actually paid but only the provisions have been made in view that higher rate of interest may be charged. The CIT(A) accordingly out of total disallowance of Rs. 18,66,526, disallowance of Rs. 15,64,919 is confirmed and the balance is deleted. 8. We have heard the rival contentions of the parties and carefully gone through the material on record. After considering this fact that the CIT(A) has deleted this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The CIT(A) deleted the said addition after relying upon the decision of Hon'ble Gujarat High Court in the case of CIT vs. Dascroi Taluka Co-operative Purchase Sales Union Ltd. (1981) 21 CTR (Guj) 38 : (1980) 126 ITR 413 (Guj) and CIT vs. SLM Maneklal Industries (1977) 107 ITR 133 (Guj). 12. Having heard both the sides, we do not find any infirmity in the order of the CIT(A) that the addition has been deleted after relying upon the judgments of jurisdictional High Court and after giving finding that the expenses incurred on gifts made to its staff members was not in fact of advertisement. In view of the above, we confirm the order of the CIT(A) on this issue also. 13. Now, we take up the appeal for asst. yr. 1988-89. The sole groun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce on the judgment of Gujarat High Court in the case of CIT vs. Dascroi Taluka Co-operative Purchase Sales Union Ltd. and CIT vs. SLM Maneklal Industries. The CIT(A) deleted the impugned addition after following the judgment of Hon'ble Gujarat High Court. The relevant observation noted by the CIT(A) from the judgment of Hon'ble Gujarat High Court is reproduced as below: "These items could not be regarded as advertisement expenses because there was no question of advertising its product or publicising the same among the member societies who were already housing business transactions with the assessee and therefore the expenditure was not governed by any limitation prescribed under s. 37(3) or any rules framed in connection with advertis ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
