2012 (8) TMI 510

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....-tax (Appeals) in restricting the loss on sale of securities claimed by the assessee to Rs 55,80,151/- instead of the entire loss of Rs 1,00,85,151/- by reducing therefrom tax-free interest income earned Rs 45,05,000/-. 3. We have considered the rival submissions. We find that the issue involved in this Ground stands squarely covered in favour of the assessee by the judgement of the Hon'ble Supreme Court in the case of Walfort Share & Stockbrokers P. Ltd. 192 Taxman 211. The Hon'ble Supreme Court has held that in cases arising before 1st April, 2002 (A.Y. 2002-03) losses pertaining to exempt income could not be disallowed. The Commissioner of Income-tax (Appeals) has followed the said judgment of the Hon'ble Supreme Court while allowing ....

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....80I undertaking to the total material consumed by the assessee-corporate entity as a whole, instead of on the basis of sales of the respective unit and for this purpose, the issue was restored back to the Commissioner of Income-tax (Appeals) for adjudication afresh in the light of such directions. The Commissioner of Income-tax (Appeals) after examining the issue in the light of the directions given by the Tribunal, allowed the deduction under section 80-I at Rs 6,79,41,640/- after observing that the working of deduction was correct in view of the directions of the Tribunal stated above. It is also brought to our notice that the Assessing Officer has passed order giving effect by allocating common expenses in the proportion of consumption o....