TaxTMI 
TaxTMI 
1990 (3) TMI 111
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....he details are given below: Dayal Sharma Pictures (P) Ltd. . . . . Value of 485 Equity Shares as . . . . per last Balance . . . Sheet @ 40 . . 19,400 . Sold as under No. of Shares . . . Shri R.R. Sharma 165 6,500 . . Smt. Sunder Bai 150 6,000 . . Shri R.R. Sharma 85 2,500 . . Shri Raj Sharma 85 2,500 17,500 1,900 . 485 . . . Mathur Papers & Foils (P) Ltd. . . Value of 3,840 Equity Shares of Rs. 100 each. 3,84,000 . Sold to Mr. K.S. Suri @ Rs. 4 per share 15,360 3,68,640 Mathur Alloy Steels (P) Ltd. . .....
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....d. Seven projects were investigated in 1973-74 asst. yr., one project in 1974-75 and seven projects in 1975-76. Eight companies were floated for the first time in 1975-76 and one company in 1976-77. The investments in these projects were claimed to be from business assets in 1979-80 asst. yr. One of the companies' shares were sold at a profit of Rs. 73,750 and this profit had been assessed at tax. The same year three other companies were sold at a loss of Rs. 1,20,230. During 1980-81 shares of two companies were sold which resulted in a loss of Rs. 6,24,890. Going to the years subsequent to the year under appeal it was submitted that in 1985-86 shares of one company were sold for a loss or Rs. 8,35,000 and in 1987-88 another company for a l....
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....ubmitted for the asst. yr. 1978-79, the Commissioner(A) had noticed that this was the business activity and had allowed as business expenditure Rs. 26,350 incurred on investigation of new projects. Even for this assessment year, the IAC in his order dt. 7th Sept., 1983 and referred to this activity in paragraph 2 of his order and the ITO himself in para 3 of his order accepted that the assessee had many other business activities of promotion of new ventures. Thus, once it is all accepted that the assessee has this activity, it is submitted the assessee would be eligible for treating the same as business loss. 6. Shri Bakshi for the Department pointed out that the books treated the investment in shares as investment simplicitor. If these ....
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....panies. If these, by themselves, would be conclusive then we can accept the assessee's contention. But if these facts can be explained consistent with the Department's case then the assessee would not be eligible for the claim. 9. As stated earlier, the assessee had investigated 15 projects. Out of this, they found feasible only 9 projects. So the other 6 projects were already written off as dead loss. They had floated companies in respect of these 9 projects and had invested more than Rs. 30 lakhs thereon. The company Mathur Paper and Foils Ltd. had an authorised capital of Rs. 50 lakhs and an investment of Rs. 3.84 lakhs was made thereon. The entire shares have been sold. If the assessee's case was that the shares in company were their....
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.... point. So, this addition would stand deleted. Thus, the assessee's appeal stands partly allowed. 13. We now take up the departmental appeal. The item is an addition of Rs. 65,535 deleted by the Commissioner (A). This amount is credited to the profit and loss account after writing off the balances in various sundry creditors' accounts. The details of the write off as given to the ITO show numerous small amounts. Many of them incurred as a liability in 1971-72 and still earlier years. On enquiries, we were told that these amounts were received as deposits from customers to whom the assessee had sold tractors. Apparently, the amount of deposit receipt was in excess of the price charged and the difference was remaining in the assessee's boo....