2016 (1) TMI 1454

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....A.Y. 2009-2010.   2. Both these appeals were heard together and are disposed of by this common order for the sake of convenience.   3. ITA No. 1577/Ahd/2012 Revenue's appeal. The grounds of Revenue read as under:- 1. That the ld. CIT(A) has erred in law and on facts in deleting the addition made on proportionate amount of TDS u/s. 194C read with section 40(a)(ia). 2. That the ld. CIT(A) has erred in law and on facts in deleting the addition of Rs. 2,09,83,221/- towards bad debts despite the fact that the condition laid down u/s. 36(2) of the Act are not satisfied in this case. 3. That the ld. CIT(A) has erred in law and on facts in deleting the addition of Rs. 89,67,780/- despite the fact that conv....

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....t. 6. Revenue is before us against this direction of the ld. CIT(A) and the assessee is also in appeal vide ITA No. 1569/Ahd/2012. We find that an identical issue was considered by the Tribunal in assessee's own case in A.Y. 2008-09 vide order dated 04.09.2015 in ITA No. 2754 & 2884/Ahd/2011. The findings of the Tribunal can be found at Para 3 of its order. Wherein it has followed the decision of the Hon'ble jurisdictional High Court in the case of Prayas Engineering Ltd. in Tax Appeal No. 1237 of 2014 dated 17.11.2014 and also relied upon the decision of the Hon'ble High Court of Calcutta in the case of S.K. Tekriwal 361 ITR 432. 7. Respectfully, following the decision of the co-ordinate Bench, we set aside the findings of the ld. CI....

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....67,780/-. The A.O has considered this issue at Para 4 of his order on page 13 wherein while scrutinizing the return of income. He found that the assessee has converted 435586 numbers of equity shares of various companies amounting to Rs. 8,62,96,435/- from stock in trade to investment at cost. The A.O asked for the justification for conversion of shares from stock in trade to investment. Assessee filed a detailed reply justifying its conversion of stock from stock in trade to capital assets. It was strongly contended that the shares have not been sold. The conversion is only a book entry and no profit can be said to have arisen and it was further explained that profit if any would arise only when the share are sold. The explanation of the a....