2013 (2) TMI 825

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.... Mr.A.Mukherjee, Adv. Ms. Smita Das Dey, Adv. ORDER The subject matter of challenge in this appeal is a judgment and order dated 26th September, 2012 passed by the Income Tax Appellate Tribunal by which the order passed by the CIT (Appeal) was set aside and the order passed by the Assessing Officer was restored. The appeal was admitted on 20th November, 2012 with the following substantial ques....

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.... years mentioned above, the assessee had consistently incurring substantial losses in share trading. There were no profits from trading in shares in any of the 4 consecutive assessment years mentioned as above. Now, the principal motive of a business is earning of profit. Had the assessee could not generate profit from the activities of share trading, it could have stopped its business of share tr....

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....es were admittedly sold at the prevailing market rate. Due to the speculative market condition the assessee might have suffered the loss, but that cannot by any means justify a conclusion that the losses are artificial. CIT (Appeal) has dealt with this aspect of the matter in great detail and we need not reiterate the same. The Tribunal, in appeal at the instance of the Revenue, opined, inter alia....

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....t of loss out of pre-arranged transactions so as to reduce the quantum of income liable for tax." The opinion that the assessee generated a sizeable amount of loss out of pre-arranged transactions so as to reduce the quantum of income liable for tax might have been the view expressed by the Assessing Officer, but he miserably failed to substantiate that. We are sorry to say that the learned Tribu....