TaxTMI 
TaxTMI 
2017 (3) TMI 1243
X X X X Extracts X X X X
X X X X Extracts X X X X
....5 passed by Income Tax Appellate Tribunal, Lucknow Bench 'A' Lucknow (hereinafter referred to as the "Tribunal") deciding three appeals relating to different Assessment Years (hereinafter referred to as "A.Y."), details whereof are given as under:- Serial no. Income Tax Appeal no. Income Tax Appeal no. before Tribunal Assessment Year 1. 98 of 2005 13/Alld/98 1994-95 2. 100 of 2005 57/Alld/2000 1996-97 3. 101 of 2005 183/Alld/99 1995-96 3. There are two substantial questions of law raised in Income Tax Appeal no. 98 of 2005 and in remaining two appeals there is single substantial question of law which is identical as question no. 1 in Income Tax Appeal no. 100 of 2005. Ther....
X X X X Extracts X X X X
X X X X Extracts X X X X
....truction Co. Pvt. Ltd. (hereinafter referred to as the "Assessee") w.e.f. 02.12.1978. For respective three A.Y. in question, Assessee filed Returns and date of filing of Return, income/loss declared, and date of completion of assessment, and other details are as under:- Assessment Year Date of filing of return Income/loss declared Rs. Date of assessment finalised Income assessed by A.A. Rs. 1994-95 15.02.1995 5,54,480 07.06.1996 -2541650 1995-96 29.11.1995 -51728294 speculation loss 89,57,710 27.02.1998 -20318417 1996-97 30.10.1996 -4758331 23.03.1999 Nil 6. In all the three A.Y.s' Assessee had shown profit on sale of shares (lon....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 1,25,30,000/- which comes to Rs. 18,79,500/-. 11. Coming to the first question, we find that concurrent finding has been recorded by CIT (A) and Tribunal both that since inception, when shares of M/s Jai Prakash Industries Pvt. Ltd. were purchased, the same were shown as investment. It is also admitted that Assessee is engaged in business of construction, contract work, hiring of construction equipment and machineries and structural and building work etc. Though A.A. has said that there was a frequent transaction in shares but we find no details thereof in any assessment order of all three years. In assessment order dated 07.06.1996 for A.Y. 1994-95, A.A. has also observed that since after incorporation, Assessee mainly carried on busin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....was taxed as "long term capital gain" vide assessment order date 29.03.1996. In this very year Assessee also acquired 35,65,344 equity shares of M/s Jai Prakash Industries Pvt. Ltd. and out of same, sold 1,58,600 shares in this very year. It earned profit of Rs. 1,90,27,600/- which was assessed as "short term capital gain". Assessee never treated or converted its investment in shares into stock in trade but then from A.Y. 1994-95 started business of shares dealings and speculation in shares. 14. It is in this backdrop that in assessment orders in question CIT (A) held that shares of M/s Jai Prakash Industries Pvt. Ltd. held by Assessee as investment, and profit received therefrom, would be "capital gain" (long term/short term as the case....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... hire charges on Rs. 1,87,00,000/-, dividend Rs. 3,33,00,000/-, sale of shares of Rs. 16,08,00,000/- and another income of Rs. 27,69,00,000/-. The aforesaid amounts were sufficient to cover up the outstanding amount of Rs. 1,25,30,000/-. A.A. also could not place any material to prove that Assessee had advanced interest bearing funds to these persons. 20. It is in these facts and circumstances and factual backdrop that CIT (A) and Tribunal accepted plea of Assessee and held that disallowance of interest payment is unjustified. 21. Learned counsel for parties, stated that a similar question has been considered by this Court in Income Tax Appeal No. 87 of 2008 (Commissioner of Income Tax Central Vs M/S Jai Prakash Industries Pvt. Ltd.) ....