TaxTMI 
TaxTMI 
TaxTMI 
2023 (3) TMI 1530
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.... facts and in the circumstances of the case, the Tribunal is right in setting aside the disallowance of short term loss of Rs. 11,27,2000/- claimed by assessee in Profit and Loss Account by holding that the shares have acquired by assessee under normal business transaction and can be taken as stock-in trade even when assessing authority has proved that the assessee has adopted colorable device to reduce the tax liability by booking business of 11.27 crore and assessee had intentionally shown shares of M/s.Asianet Communication as an inventory in its books to claim loss as business loss, the assessee had failed to give any reason for conversion of loan to the exorbitant pricing of these shares at a premium of Rs.490/- per share? 2. Whethe....
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....uestion reads as under: 'Whether on the facts and in the circumstances of the case the Tribunal is right in setting aside the disallowance made by assessing authority under section 37 of the Act, the payment made towards Consulting Fee for setting up joint venture with Star group by holding that assessee had made effort to start joint venture but could not do the same even when the this expenditure was not incurred exclusively for the business purposes or alternatively as a capital expenditure?' 3. Shri. Sanmathi submitted that Revenue does not press question No. 1 with liberty to raise question No. 1 in ITA No.298/2017. 4. Shri. Narendra Kumar submitted that question No.2 is covered against the Revenue as per the judgment in the case ....
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....ench 'B' at Bangalore] have reversed the finding of the AO without properly appreciating the fact that money was transferred to the sister concerns. 8. Shri. Narendra Kumar submitted that the Assessee had paid an amount of Rs. 74.49 crores as share application money to M/s. Asainet TV Holdings to consolidate JELV's holding. A sum of Rs. 10.20 crores was paid to M/s. India Radio Ventures Pvt Ltd., to get the controlling rights/interest. He submitted that the Assessee is in the business of advertisement and made investment as it was commercially expedient. 9. With regard to payment of Rs. 3.23 crores to India Radio Ventures and Rs. 40 lakhs to M/s. Ajure Services Pvt. Ltd., submitted that the monies have been paid as a business strategy in ....
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....authorities have recorded that the expenditure was commercially expedient. It is settled that the AO cannot sit in the chair of an Assessee and decide what is commercially expedient in a particular transaction. Having re-examined the matter, we find no error in the order passed by the CITA and confirmed by the ITAT on this aspect. Accordingly, question No. 3 is answered in favour of the Assessee and against the Revenue. 13. Re - Questions No. 4 and 5: These two questions are considered together as transfer of money is to the sister concerns towards consultancy fee. The AO has recorded that only invoice and agreement have been produced before the AO and there was no other evidence to show that any consultancy services was provided by the re....