2017 (7) TMI 1048

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.... M. Swaminathan For the Respondent: Mr. R. Vijayaraghavan For M/s. Subbaraya Iyer ORDER ( Order of the Court was delivered by Dr.Anita Sumanth, J.) The questions raised and admitted in this departmental appeal are as follows; "1. Whether in the facts and circumstances of the case, the Tribunal had enough material to hold and was right in holding that the loans to companies in liquid....

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....me Tax (Appeals), the order of assessment was confirmed holding both claims to be premature. An appeal was filed before the Income Tax Appellate Tribunal that allowed both claims vide order dated 24.7.2002 and the said order is assailed in appeal before us. 3. We have heard the submissions of Mr.S.Swaminathan for the Revenue and Mr.Vijayaraghavan for the assessee. 4. The assessee is a State ....

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.... and facilitating growth and development of industries in the state of Tamilnadu. Investment by way of subscription to shares is solely on account of the under writing operations. Such being the position, the investments are of the nature of stock-in-trade and cannot be held to be otherwise. In fact, this aspect of the matter was decided by the Income Tax Appellate Tribunal in the assessee s own c....

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.... to be written off in view of the doubtful character of recovery of loans and investments. Investments in the shares of six industrial companies were undertaken by way of underwriting of issue of shares. Upon finding that the net worth was negative, it was proposed to write off 100% of such investment in five cases. In the matter relating to one defaulter, M/s. Southern Brick Works Limited, the re....