TaxTMI 
TaxTMI 
2014 (4) TMI 1053
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....n of law was raised, neither framed substantial question of law for determination as required under Section 260A of the Income Tax Act. Since Appeals are awaiting disposal for last 12 years, we deem it proper to assume that Appeals have been admitted on substantial questions of law catalogued in para 02 of memoranda of appeals. We accordingly proceed to deal with the Appeals on hand. 2. Respondents in both the Income Tax Appeals on hand are Private Limited Companies engaged in business of purchase and sale of shares, debentures and other securities. 3. Green Field Commercial Private Limited (respondent in ITA No. 02/2002) filed Return on 28th November 1995, disclosing loss of Rs. 1,12,86,432.00. The Return was processed under Section ....
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.... while exercising revisional powers under Section 264 of the Act, was whether "deferred revenue expenditure" should be allowed fully in one year or be deferred according to entries made by assessee in this regard and whether the loss claimed by assessee was a genuine loss and whether it was revenue or capital loss. 7. Assessees - respondents herein, questioned CIT Amritsar's order dated 21st March 2000 in two separate appeals, being ITA No. 264(ASR)2000 and ITA No. 277(ASR)2000. The Income Tax Appellate Tribunal, Amritsar Bench (for short "Tribunal"), opining that identical issues were involved in two appeals, heard appeals together and allowed both Appeals vide its order dated 24th October 2001. Tribunal quashed order dated 21st Mar....
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....11. The controversy relates to loss suffered on account of purchase and sale of non-convertible portion of debentures by respondents companies. Assessing Officer did not accept the Return in a mechanical manner but took it up for close scrutiny. Notices were issued under Section 143(2)/142(1) of the act along with necessary questionarie to respondents companies. The Companies appeared before Assessing Officer through their representatives and participated in the proceedings, stretching over a period of few years. Respondent companies did not only answer questionnaire but as evident from Assessment Order, produced books of account and other record before Assessing Officer, to reinforce their stand. It was not, therefore, right to conclude th....
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....cutive order that has civil consequences for a person affected by such order. The reasons are said to be live links between the mind of authority, making order and conclusions drawn on the strength of such reasons. CIT Amritsar having failed to record satisfaction that the order in respect whereof revisional powers were exercised was "erroneous", lacked jurisdiction to exercise such power. This by itself was sufficient for Tribunal to interfere and set-aside the order of CIT Amritsar assailed before it. 13. CIT Amritsar in its notice dated 24th January 2000 sought response from respondent companies on the issues highlighted in the notice namely that loss claimed to have suffered on account of purchase and sale of non-convertible debentur....
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....ebentures at a discount, on which higher rate was payable on maturity. The Apex Court against said backdrop held that the amount of discount was not a loss out an expenditure incurred by company in order to generate funds for its business activities and that as the discount was payable in the total period of debentures issued, it was to be allowed on pro rata application of period of debentures. In the case before CIT Amritsar, loss had occurred on account of sale of non-convertible debentures. 15. Tribunal, while dealing with the Appeals against CIT Amritsar orders has made a detailed and comprehensive discussion on all aspects of the matter and reinforced conclusions drawn with the details reference to the case law on the subject. The ....