2006 (3) TMI 131

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....ee's contention that the shares held by it were its stock in trade. The Assessing Officer was of the view that the shares were held as a long-term capital investment. Aggrieved by the said order, the assessee preferred an appeal before the Commissioner of Income-tax (Appeals) who reversed the view taken by the Assessing Officer and held that the shares held by the assessee were actually its stock-....

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....nal to address the crucial question whether the stocks held by the assessee were its stock-in-trade, according to Mr. Sabharwal, vitiates the order made by the Tribunal. We regret our inability to accept that submission. The Tribunal has no doubt addressed itself only to the question of method of valuation adopted by the assessee but that is not because it has ignored the issue regarding the natur....

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....er of Income-tax (Appeals) has erred in allowing depreciation of Rs. 2,52,450 on account of depreciation when no justified reason has been furnished by the assessee for the purchase invoice to be in the name of a non-existent firm. (c) The order of the Assessing Officer may be restored and the order of the Commissioner of Income-tax (Appeals) may be set aside with respect to the above-mentioned....