2020 (3) TMI 1272

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....ted 20.03.2015 passed by learned Assessing Officer (hereinafter called "the AO") u/s. 143(3) of the Income-tax Act, 1961 (hereinafter called "the Act"). 2. The grounds of appeal raised by assessee in memo of appeal filed with Income-Tax Appellate Tribunal, Chennai (hereinafter called "the Tribunal") read as under:- 1. The order of the COMMISSIONER OF INCOME TAX(A)13 is contrary to Law, Facts and circumstances of the case and against Natural Justice. 2. The CIT(A) is not justified in confirming the order of the Assessing officer assessing the total income of the appellant company at Rs. 3,01,46,067 as against Rs. 2,78,60,010 returned by the Appellant. 3. The CIT(A) has erred in confirming the disallowance of loss of Rs. 21,70,387 incu....

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....oters and involved in construction of residential flats. The assessee had made investment in silver to the tune of 142.811 KGs of silver bars at a cost of Rs. 1 Cr. on 27.04.2011 which was sold on 16.02.2012 for a value of Rs. 78,21,613/-, which led to loss of Rs. 21,70,387/-. The assessee claimed said loss as business/trading loss on the grounds that it is an adventure in the nature of trade. This contention of the assessee was not supported by main object clause of the assessee and the activities carried out by the assessee of being building promoters, while the assessee claimed that its objects as per other object clause in Memorandum of Association are to trade in silver and hence the aforesaid loss be allowed as capital loss. Both the ....

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....ssessee. We have observed that the assessee has its own Capital and Reserves to the tune of Rs. 2,15,25,724/- as on 31.03.2012, which was earlier to the tune of Rs. 26,76,154/- as on 31.03.2011. As per audited financial statements filed by the assessee for the year ended 31.03.2012, there is a profit after-tax of Rs. 1,88,49,570/- during the year under consideration. We have also observed that this is a solitary transaction under taken by the assessee in investing in silver bars and the assessee has neither invested in silver bars prior to this solitary transaction nor invested later in silver bars post completion of this transaction of sale of silver bar on 16.02.2020. In our considered view, based upon entire material on record, said inve....