2003 (3) TMI 263

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....d against the order of the CIT(A)-XXXVII, Bombay, dt. 15th Jan., 1997, for asst. yr. 1992-93. 2. Ground No. 1 is not pressed by the learned counsel of the assessee, hence dismissed. 3. Ground of appeal No. 2 reads as under: "CIT(A) erred in upholding the disallowance of Rs. 8,66,989 under s. 32AB of the IT Act in respect of unserviceable and unusable JCB excavator loader scrapped during t....

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....essee in accordance with the commercial expediency and, therefore, has to be allowed as a deduction. The learned counsel argued that the Revenue authorities have taken a narrow interpretation of the whole issue. 5. The learned Departmental Representative argued that in accordance with the provisions of law, the asset purchased has to be used for eight years and if sold prior to that it has to b....

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....the assessee is not allowed to substitute the unserviceable asset with a new one within a period of eight years in order to get investment relief. The provision of law is to be interpreted in accordance with its substance and purpose of the provision, and any interpretation so as to defeat the very purpose of the enactment should be avoided. The plea of the learned Departmental Representative that....

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....g the same as speculation loss. The learned Departmental Representative argued that no delivery was taken or given in this case and, therefore, has been rightly held as speculation loss. 9. We have considered the rival submissions. We find that no payment was made in respect of purchase price of these shares and admittedly no delivery of shares was taken by the assessee. In these facts and in t....