2020 (11) TMI 931

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....manufacturing and selling of Polyester chips, polyester films and engineering plastics. For the assessment year 2005-06, they have filed their return of income on 30.10.2005 showing nil income after adjusting the brought forward losses to the tune of Rs. 17,61,29,318/-. Assessment u/s. 143(3) of the Income-tax Act (for short "the Act") was complete at Rs. Nil, but making certain disallowances of Rs. 16,50,000/- towards investments in mutual funds, Rs. 3,70,696/- towards club fees besides disallowing Rs. 1,16,64,344/- denying the carry forward short-term capital loss and the learned Assessing Officer reached the total income at Rs. 18,30,23,363/- under the normal provisions of the Act. The learned Assessing Officer further added a sum of Rs....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....an opportunity to submit the material, if any, for verification of the entitlement to carry forward short term capital loss and therefore, we set aside the impugned finding of the ld. CIT(A) and remand the matter to the file of Learned Assessing Officer for verification of the claim of the assessee to carry forward short term capital loss by giving an opportunity to the assessee. Ground No. 1 of the assessee is, therefore, allowed for statistical purposes. 5. In so far as the second ground of appeal in respect of addition of Rs. 16.5 lacs towards unexplained investment is concerned, the assessee has been contending before the authorities below that two items of investment in Reliance Mutual Fund to the tune of Rs. 8.00 lacs on 02.04.2004 a....