TaxTMI 
TaxTMI 
2021 (7) TMI 1238
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....al gain though the same is not a taxable income under the provisions of the Income-tax Act in view of the judgment of the Hon'ble Kerala High Court in CIT vs Smt Thressiamma Abraham (1994) 227 ITR 802 against which the SLP of the revenue was not admitted by the Hon'ble Supreme Court. Thus, the surplus of Rs. 20,40,46,006/- arose on disposal of those plots, taken by the mortgagee as a charge thereon, should be excluded from the taxable income. 2. The learned CIT(A) erred in law and on facts in ignoring the judgments of the Hon'ble Apex Court in UOI vs Kaumudini Narayan Dalal (2001) 249 ITR 219 (SC) and many others that once the revenue has accepted an issue on facts in the case of one assessee, then the revenue cannot agitate the same in the case of another assessee. Thus, the claim of the appellant must be accepted. 3. The learned CIT(A) despite admitting the additional ground of appeal, yet did not give any reasons as to why the above claim of the appellant is not maintainable in law and on facts placed on record." 3. Appellant, JCIT, Special Range 3, New Delhi (hereinafter referred to as 'the assessee') by filing the present appeal sought to set a....
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....sessee carried the matter before the ld. CIT (A) by way of filing appeal who has partly allowed the same. Feeling aggrieved, the assessee as well as Revenue have come up before the Tribunal by way of filing the present appeals. 8. We have heard the ld. Authorized Representatives of the parties to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case. GROUNDS NO.1, 2 & 3 OF ASSESSEE'S APPEAL (ITA NO.4656/DEL/2018) 9. Undisputedly, assessee is into the business of financing including lending, advancing money, standing guarantors etc. and during the ordinary course of business, assessee stood as guarantor in case of loans given to M/s. Altar Investment Pvt. Ltd., M/s. Carissa Investments Pvt. Ltd. & M/s. Dalmia Housing Finance Ltd. by M/s. India Bulls Finance Services Ltd., who have failed to repay the same and they have entered into a Commitment Agreement dated 18.11.2009. It is also not in dispute that the assessee company has filed three sets of memorandum dated 28.01.2014 with the aforesaid three companies and thereby agreed to accept Rs. 15,00,00,000/-, Rs. 4,50,00,....
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....ee by returning following findings :- "13. We have carefully perused the decision relied by the assessee and the Ld. DR. It is true that the decisions relied upon by the Ld. DR have been duly considered by the Tribunal of Delhi Bench in the case of Addl.CIT vs Glad Investments Pvt. Ltd. (supra). In both the cases relied upon by the assessee, the assessee acted as guarantor and since the borrower could not repay the money, the lender sold the mortgaged/pledged property and sale consideration was received by the lendor and adjusted against satisfaction of debt. A perusal of the judicial decisions shows that there is a big difference between the decisions relied upon by the ld. counsel for the assessee and the facts of the case in hand. In all the decisions relied upon by the assessee, the mortgaged property was sold directly by the lender who received the sale consideration, whereas in the case of the assessee, sale deeds were executed by the assessee and the sale consideration was received by the assessee and thereafter, the assessee paid the consideration to the lender to discharge its liabilities. 14. After carefully perusing the decisions relied upon by the asse....
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....gency but due to collusive nature of transaction as provided u/s 36(1)(vii) of the Act. However, ld. CIT (A) deleted the addition by thrashing the facts and settled principle of law on the issue in question. 16. Ld. DR for the Revenue challenging the impugned order passed by the ld. CIT (A) contended that AO has made the addition on failure of the assessee to substantiate its claim. However, this contention of the ld. DR is not sustainable in view of the findings returned by the ld. CIT (A) in para 2.15 of the impugned order wherein all the documentary evidence placed on record by the assessee has been duly perused. Moreover, the short question to be decided by the ld. CIT (A) was, "as to whether loss suffered by the assessee in the normal course of its business in the non-banking activities as a guarantor is a business loss based upon commercial prudent decision?" 17. This issue has already been decided in favour of the assessee by the coordinate Bench of the Tribunal in assessee's group company case WGF Financial Services Pvt. Ltd. (supra) by returning following findings:- "17. Facts relating to the grievance related to Ground No.2 show that the assessee had giv....
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.... was subsequently confirmed by the First Appellate Authority. 21. As mentioned elsewhere, the assessee is engaged in the business of financing which included lending, advancing money, standing guarantor etc. and in its ordinary course of business, the assessee gave guarantee to the borrowings made by CIPL. As per the Agreement, CIPL was supposed to transfer shares held by it in the listed companies after repayment of its loan from IBFSL. Since IBFSL sold the shares held by it as security, CIPL was not in a position to transfer the shares to the assessee. CIPL was in debt to the assessee to the tune of Rs. 64.26 crores and since CIPL defaulted in its obligation, the assessee had to settle the quarrel by way of Memorandum Deed dated 16.03.2015 and could recover only Rs. 36.50 crores. The assessee was left with no choice but to write off the balance Rs. 27,76,92,000/-. 22. In our considered view, the entire transaction cannot be considered as the colorable device as the same was never entered with any intent to defraud the Revenue. We find that all the transactions were undertaken with third parties through bank accounts or registered Mortgage Deeds etc. in the regul....