TaxTMI 
TaxTMI 
TaxTMI 
2016 (3) TMI 413
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....on similar issue; so these are being disposed of by this common order for sake of convenience. ITA No. 54/Ahd/2009 : AY 2004-05 In this appeal, the Revenue has taken following grounds:- 1. The Ld. Commissioner of Income-tax (A)-XI, Ahmedabad has erred in law and on facts in deleting the addition made on account of accrued interest on OFCPs/DDBs of Rs. 6,98,276/- 2. The Ld. Commissioner of Income-tax (A)-XI, Ahmedabad has erred in law and on facts in deleting the addition made on account of disallowance of loss on sale of OFCPNs of Ideal Petro Products and Shree Rama Polysynth Pvt Ltd of Rs. 13,05,16,000/- 3. The Ld. Commissioner of Income-tax (A)-XI, Ahmedabad has erred in law and on facts in deleting the addition made on account o....
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....ce of loss on sale of Optionally Fully Convertible Promissory Notes (hereinafter called "OFCPNs") of Ideal Petro Products and Shree Rama Polysynth Pvt. Ltd. of Rs. 13,05,16,000/-. The assessee made investments in OFCPNs of following three companies:- i) Ideal Petroproducts Pvt Ltd ii) East West Polyart Pvt Ltd iii) Shree Rama Polysynth Pvt Ltd The investments were treated as stock in trade as on 01.04.2003. The conversion was made aggregating to Rs. 47,88,26,000/- as per the following details:- 4.1 The assessee-company sold part of these assets on 24.03.2004 and the details of sales and closing stock of these assets are as under:- The assessee treated investments in these companies as stock in trade as on 01.04.2003. The same was b....
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....sidered the same, CIT(A) allowed the claim of the assessee, which has been opposed on behalf of the Revenue, inter alia, submitting that the CIT(A) erred in law and on facts in deleting the addition made on account of disallowance of loss on sale of OFCPNs of Ideal Petro Products and Shree Rama Polysynth Pvt Ltd of Rs. 13,05,16,000/-. On the other hand, ld. Authorized Representative supported the order of the CIT(A) and raised various factual and legal arguments for the same. 4.5 After going through the rival contentions and material on record, we find that Optionally Fully Convertible Promissory Notes (in short 'OFCPNs') were purchased on 25.03.2002 on the price shown in books and payments were made. It was treated as investment made and ....
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....he parties are independent and not related to the assessee u/s.40A(2)(b) of the Act and there was no evidence that suppressed sale price difference came back to the assessee, the loss on sale could not be disallowed as loss arising from sham transaction or as bogus loss. Hence, the addition made by the Assessing Officer was rightly deleted by the CIT(A). Accordingly, we uphold the order of the CIT(A) in this issue. 5. Next issue is with regard to the disallowance out of administrative and other expenses and payment to and provision for employees for Rs. 3,64,050/- u/s 14A of the Income-tax Act. The Assessing Officer vide discussion at paragraph 7 and 7.1 of the assessment order disallowed Rs. 3,64,050/- u/s.14A of Income-tax Act. The Asses....
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....clined to concur with the findings of the CIT(A) who has rightly deleted the disallowance in question, because the dividend income, agricultural income and other incomes of the assessee having found no nexus with the expenses incurred by the assesseecompany. The assessee-company is a member of Association of Persons (AOP) and AOP is a separate legal entity. The assesseecompany received share of profit from AOP. The expenses incurred by the assessee-company have no direct or indirect nexus for receipt of share of profit from AOP and the profit on sale of security is the income assessable to tax under the head capital gain. The assessee-company had offered short term capital gain of Rs. 2,79,33,377/- and long term capital gain of Rs. 88,68,07....