TaxTMI 
TaxTMI 
2008 (10) TMI 8
X X X X Extracts X X X X
X X X X Extracts X X X X
....at the loss could not be treated as a business loss and this Order was upheld by the CIT(A) as also by the Tribunal. 2. The Tribunal in its Order dated 31.10.2001 in the quantum proceedings came to the conclusion that merely because the Assessing Officer in the Assessment Year 1986-87 had permitted the conversion of shares from investment to stock-in-trade could not ipso facto imply that the Assessment Officer for the year 1987-88 would be precluded from going into the real facts about the shares and determining whether the shares were held as investment or stock-in-trade. It was held that the shares could not be treated as stock-in-trade but had to be treated as investment. 3. The material observations of the Tribunal are that the transa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ding of the two Orders. The Order in the quantum proceedings of the Tribunal shows that the only conclusion reached is that the transfer of shares could not be booked as a business loss as this was not necessitated by any business necessity but on account of a decision of the group as a whole and as a group strategy. The order of the Tribunal in the penalty proceedings has come to the conclusion that the transactions in respect of the shares on the basis of which business loss was caused were genuine inasmuch as they were at market value and actual transfer of shares took place with the money passing. Learned counsel for the appellant/Department cannot seriously dispute that it is not as if every addition made by the Assessing Authori....