2008 (2) TMI 579

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....la, learned counsel for the appellants and Sri S. Parthasarathi, learned counsel for the respondent. 2. The Revenue is before us by filing this appeal under section 260A of the Income-tax Act, 1961 (hereinafter shall be referred to in short as "the Act") against the order dated April 8, 2004, passed by the Income-tax Appellate Tribunal, Bangalore Bench "A", in I. T. A. No. 126/Bang/1997 for the....

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....sment was completed determining the total income at Rs. 11,89,208 before adjusting the brought forward loss of the earlier years. In computing the abovesaid total income, the Assessing Officer has disallowed share loss in respect of M/s. MIC Auto Ancillaries limited amounting to Rs. 29,56,870. 7. The assessee with an intention to promote M/s. MIC Auto Ancillaries Limited had purchased shares of....

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....loss has been allowed as business loss by the Income-tax Appellate Tribunal, Cochin Bench vide its order dated December 19, 1992. 9. The Commissioner of Income-tax (Appeals) and the Tribunal both have held in favour of the assessee that investment in shares of such company should be treated as in the course of business and not as capital investment. From the main object of the company it was cl....

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.... to examine as to what was the true nature of the transaction and whether in fact it has resulted in profit or loss to the assessee. 10. At least this fact could not be disputed by the learned counsel for the Revenue that the assessee had purchased the shares of M/s. MIC Auto Ancillaries Limited by investing a sum of Rs. 45,52,870. But while selling such shares it could only fetch a price of Rs....