2006 (12) TMI 97

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....ng questions: "1. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in accepting the Commissioner of Income-tax (Appeals)' view in deleting the disallowances of share loss of Rs. 9,55,000 for the assessment year 1991-92, Rs. 1,57,000 for the assessment year 1993-94 and Rs. 2,18,700 for the assessment year 1994-95 on the ground that the transactions were done through brokers without considering the aspect of avoidance of tax payment by planning outside the frame work of law? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the investment in flat was made utilizing the fund arising from the sale of shares and realization of loans and advances ignor....

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....ed on account of share transactions. The Assessing Officer also disallowed the claim in respect of interest paid on loan for the assessment years 1992-93 to 1995-96 on the ground that the fund was utilised for non-business assets. Against both the decisions, the assessee preferred appeal before the Commissioner of Income-tax (Appeals), Guwahati. The Commissioner of Income-tax deleted the disallowance of loss on account of share transactions as well as the interest paid on loan secured for purchase of a flat in Bombay. On appeal, the learned Tribunal affirmed the decision of the Commissioner of Income-tax (Appeals). It is against these concurrent findings, the Revenue has preferred this appeal. Reappreciation of facts is not the usual cou....

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....nd not on evidence. The Assessing Officer did not rely upon any evidence even to suggest that the transactions duly supported by contract notes and bills are not a good piece of evidence. There is no controversy with regard to the proposition of law that trading results cannot be disturbed merely on surmises and conjectures. Relying upon the contract notes and the bills produced, the Commissioner of Income-tax (Appeals) reversed the finding of the Assessing Officer. With regard to disallowance of interest of Rs. 9,06,615, the Commissioner of Income-tax (Appeals) noticed that the purchase of flat by the assessee in the assessment year 1992-93 is not in dispute. The acquisition was duly verified with reference to the accounts as reflected ....