2016 (6) TMI 89

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....07. Revenue's Appeal - ITA No.1057/Mds/2013:- 2. At the outset, we find that, tax effect with respect to the appeal in ITA No. 1057/Mds/2013 filed by the Revenue is below ten lakhs. It is pertinent to mention that the CBDT in its Circular No.21/2015 dated 10.12.2015 had instructed its officers to withdraw all the appeals pending before the ITAT where the tax effect is less than ` 10 lakhs. Therefore, this Tribunal is of the considered opinion that this Circular of CBDT is binding on the officers of the Department. Hence, the Revenue cannot proceed further in this appeal. Accordingly, the appeal stands dismissed. Assessee's Appeal - ITA No.1564/Mds/2013:- 3. Brief facts of the case are that the assessee is a limited company engaged ....

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....med the order of the learned Assessing Officer agreeing with his view. 5.1 At the outset, we find that this issue is covered by the Hon'ble Apex Court decision cited supra, wherein the Hon'ble Apex Court held as follows:- "Expenditure incurred by a company in connection with the issue of shares with a view to increase its share capital, is directly related to the expansion of the capital base of the company and is capital expenditure, even though it may incidentally help in the business of the company and in the profit making." 5.2 Following the ratio laid down by the Hon'ble Apex Court, we do not find it necessary to interfere with the orders of the Revenue. Therefore this ground raised by the assessee is decided against it.....

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....Traders for identification of sites, vetting of documents etc. Rs.25,00,000 Total Rs.95,00,000 Out of the total expenditure of Rs. 70,00,000/- incurred during the assessment year 1999-2000 and Rs. 25,00,000/- incurred during the assessment year 2005-06, the assessee has written off Rs. 57,00,000/- as on 31.03.2005 which included 50% of Rs. 25,00,000/- being the expenditure incurred during the assessment year 2005-06. The balance outstanding amount of Rs. 38,00,000/- was written off in the books of accounts by the assessee in the relevant assessment year which included 50% of Rs. 25,00,000/- expenditure incurred during the assessment year 2005-06. The learned Assessing Officer disallowed the entire amount since it was incurred wi....

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..... The learned Commissioner of Income Tax (Appeals) also confirmed the order of the learned Assessing Officer because the assessee company did not furnish any evidence to show that M/s. Money Shoppee Network Ltd. has become defunct. 8.1 Even on this issue, we do not find any scope to interfere with the orders of the Revenue because from the facts of the case it is apparent that the company has invested in the shares of M/s Money Shopee Network Ltd., and shown under the head 'investment'. Only when such shares are sold, capital gain/loss will arise in the case of the assessee. However in this case before us, the assessee has neither sold the shares nor converted the investment into stock-in-trade. Therefore, we confirm the order of the lea....