Law:

Section:

Section 28(i) of the Income-tax Act, 1961 - Business loss/deductions - Allowable as - Assessment year 1991-92 Where assessee-company carrying on business of investment and finance company, with an intention to promote MIC had purchased shares of said company and after holding such shares for a period of eight years, it thought it fit to sell same, loss arising from transaction was to be treated as business loss and not as capital loss [In favour of assessee] Where the assessee, with an intention to promote MIC, had purchased shares of the said company and after holding such shares for a period of eight years, it thought it fit to sell the same at loss and claimed the same as business loss and the Tribunal upheld the assessee's claim: Held that, from the main object of the company it was clear that it was also carrying on the business of investment and finance company and to buy, hold and sell the shares of such company. The Commissioner (Appeals) as well as the Tribunal both accordingly, held that holding of shares by the assessee in pursuance of the said object should be treated as holding of shares for the purpose of business. Accordingly any loss on sale of such shares should be treated as business loss and not loss under the head 'Capital gain' and 'Capital loss'. In view of the Supreme Court decision in the case of Sutlej Cotton Mills Ltd. v. CIT[1979] 116 ITR 1 no question of law arose from the Tribunal's order. M. V. Seshachala for the Appellant. S. Parthasarathi for the Respondent. JUDGMENT Deepak Verma, J.- Heard Sri M. V. Seshachala, learned counsel for the appellants and Sri S. Parthasarathi, learned counsel for the respondent. 2. The Revenue is before us by filing this appeal under section 260A of the Income-tax Act, 1961 (hereinafter shall be referred to in short as "the Act") against the order dated April 8, 2004, passed by the Income-tax Appellate Tribunal, Bangalore Bench "A", in I. T. A. No. 126/Bang/1997 for the assessment year is 1991-92. 3. The appeal before the Tribunal was also at the instance of the Revenue against the order passed by the Commissioner of Income-tax (Appeals). 4. The appellant has formulated the following substantial…

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