TaxTMI 
TaxTMI 
2012 (11) TMI 621
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.... in ITAs No.123 & 124/Coch/2011 for the assessment years 2006-07 and 2007-08. The common issue arises for consideration in both the appeals is with regard to disallowance of amount invested by the assessee in Trivandrum Rubber Works Ltd as unsecured loan with an intention to take over the management of Trivandrum Rubber Works Ltd. 3. Shri S.S. Daniel Mobesh the ld.representative for the assessee submitted that the assessee company is owned by the Government of Kerala. On the orders of Government of Kerala, the assessee company advanced unsecured loan to another government company, viz. Trivandrum Rubber Works Ltd with an intention to take over the company. The assessing officer has added 10% of the unsecured loan as interest income. The ....
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....et aide and the addition is deleted. 5. The assessee has taken one more ground for assessment year 2007-08 pertaining to disallowance of claim of loss on revaluation of spares as expenditure. 6. Shri SS Daniel Mobesh, the ld.representative for the assessee submitted that the assessee has claimed Rs.2,48,209 as loss on revaluation of spares. According to the ld.representative, the loss on revaluation of spares is a revenue loss, therefore, it has to be allowed. 7. On the contrary, Shri Pradumna Kumar Singh, the ld.DR submitted that the loss on revaluation of spare is a capital loss in nature. According to the ld.representative, spare is nothing but a capital asset. Therefore, any loss or gain has to be treated as capital gain / loss....
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.... assessee is that the revaluation of tools and implements would generate funds for the replacement of asset. It is not known how such a revaluation would generate funds for replacement of asset. The loss or gain, if any, in the revaluation would be notional in nature, therefore, the assessee may not have any funds for replacement of asset physically. Therefore, the contention of the assessee that revaluation of the loose tools would generate fund for replacement is not correct. As rightly submitted by the ld.DR, the loss, if any, in the revaluation of the loose tools and implements would be capital in nature, therefore, the same cannot be allowed while computing the income as revenue expenditure. In view of the above, we do not find any inf....
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.... officer to consider the issue as indicated in the judgment of the High Court; therefore, he may not have any objection in remanding back the matter to the file of the assessing officer for reconsideration. 13. We have considered the rival submissions on either side and also perused the material available on record. As rightly submitted by the ld.representative for the revenue and the assessee, the High Court has set aside the order of this Tribunal and remitted the issue back to the file of the assessing officer for reconsideration as indicated in the High Court judgment. In view of the above, this Tribunal is of the opinion that for the years under consideration also, the matter needs to be reconsidered in the light of the judgment of ....