2012 (8) TMI 482

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....e assessee and Shri Sanjay Punglia, JCIT represented on behalf of the Revenue. 2. The only issue in the grounds of appeal is that the Commissioner of Income Tax (Appeals) erred in confirming the Assessing Officer's action in disallowing diminution in value of investments of Rs.6,60,000/- in respect of shares of Shriram Asset Management Co. Ltd. 3. The assessee, for the assessment year under appeal, claimed deduction of Rs.19,85,000/- in respect of diminution in value of investments written off. The said provision of Rs.19,85,000/- consists of following: i. Provision relating to Shriram Asset Management Company Limited. : Rs. 6,60,000 ii. Provision relating to 6.13% Government of India loan : Rs. 13,25,000 Total : Rs.....

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....sallowance has been upheld by the ITAT in assessee's own case for the assessment years 2006-07 and 2007-08 in I.T.A. No. 320/Mds/2011. The Commissioner of Income Tax (Appeals) also held that the assessee has not explained how the investment in shares of Shriram Asset Management Co. Ltd. constituted business promotion activities and the assets were held as investments and not as stock in trade. Therefore, he held that the diminution in value of shares is a capital loss. 5. The assessee is in appeal before us. The counsel for the assessee submitted that the shares have been held as business asset in the books. The counsel for the assessee reiterated the submissions made before the Commissioner of Income Tax (Appeals) and prayed that the....

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....nd, if the same is disallowed during this assessment year also, it amounts to double disallowance.   7. The counsel for the Revenue relied on the orders of lower authorities. 8. We have heard both sides, perused the materials available on record and orders of lower authorities. The assessee has not brought on record any material to show that the shares of Shriram Asset Management Co. Ltd. are held as business assets as contended and required to make provision for diminution in value of investment in the books of account. Therefore, we agree with the view taken by the Commissioner of Income Tax (Appeals) that the assessee has not explained how the investments in shares of Shriram Asset Management Co. Ltd. constituted business asse....