2013 (8) TMI 240

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....) in deleting the disallowance of Rs. 35,66,478/-, made by the Assessing Officer on account of writing off the assets such as cash balance of Rs. 6460/- in current account, Fixed Deposit of Rs. 20,60,293/- and shares of Rs. 15,00,025/- of Visnagar Nagrik Sahakari Bank Ltd. after treating such capital loss as revenue expenditure?      2. Whether in the facts and circumstances of the case, loss on account of writing off the assets such as cash balance of Rs. 6160/- in current account, Fixed Depsoit of Rs. 20,60,293/- and shares of Rs. 15,00,025/- of Visnagar Nagrik Sahakari Bank Ltd. was capital loss or revenue loss?" 2. Both the questions are being considered together as they arise out of the identical issue. Heard ....

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....ng the tender from the Government of Gujarat. Since it could not have obtained the bank guarantee without purchase of share and placing the fixed deposit, this was not investment but a condition precedent for the bank guarantee, and therefore, this was done in a capacity not as an owner of the asset but as a trader. 2.3 Revenue challenged the same before the Income Tax Appellate Tribunal, which, concurring with the CIT(A) relied on the two decisions of the Apex Court, also confirmed such findings. 3. It is argued by learned counsel Mr. Patel for the revenue strenuously that there should be interference in the orders of both CIT(A) as well as the Tribunal as this was essentially a capital loss and not a loss incidental to the business.....