Zulu Merchandise Pvt. Ltd. vs. ITO, Ward-5(1), Kolkata
Parties Involved
Facts Summary
Zulu Merchandise Pvt. Ltd. is engaged in the business of money lending and trading/dealing in shares and securities. During the year, the assessee filed a return of income declaring total income of Rs. 1,34,616/-. The case of the assessee was selected for scrutiny under CASS. The assessee incurred a loss of Rs. 51,33,870/- from the trading in two scrips namely Redfort Global Ltd. and Shreenath Commercial Ltd. The Assessing Officer (AO) observed that the loss was bogus as it was pointed out by the Investigation Report of DIT(Inv) that the above noted companies were not having any intrinsic worth and were not having any proper line of business. The AO treated the loss as non-genuine intended to evade tax by claiming the interest income against the said loss. The Ld. Commissioner of Income Tax (Appeals)-NFAC, Delhi (CIT(A)) also confirmed the addition by holding that the claim on sale of shares was bogus.…
Decision in favour of
Assessee
Legal Issues
- 1. Disallowance of loss incurred in the trading of shares
Judgment Outcome
Decided in favour of Assessee.
Precedents Relied Upon
2 precedents cited in this judgement.
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