Delhi H.C : Whether, on the facts and in the circumstances of the case, the Tribunal was correct in allowing the sum of Rs. 2,62,658 as a short-term capital loss in the asst. yr. 1975-76?

High Court Of Delhi

CIT vs. Capital Bus Services (P) Ltd.

Sections 74

Asst. Year 1975-76

Arijit Pasayat, C.J. & D.K. Jain, J.

IT Ref. No. 195 of 1982

7th February, 2001

Decision in favour of Answer to question declinedCounsel Appeared

Sanjeev Khanna with Ajay Jha, for the Petitioner : None, for the Respondent

JUDGMENT

ARIJIT PASAYAT, C.J. :

At the instance of Revenue, following question has been referred for opinion of this Court under s. 256(1) of the IT Act, 1961 (in short ‘Act’), by the Income-tax Appellate Tribunal Delhi Bench Delhi “C” (in short ‘Tribunal’) : “Whether, on the facts and in the circumstances of the case, the Tribunal was correct in allowing the sum of Rs. 2,62,658 as a short-term capital loss in the asst. yr. 1975-76?”

The dispute relates to the asst. yr. 1975-76. The dispute related to the question as to in which year the amount of Rs. 2,62,658 was to be allowed as a short-term capital loss. The Commissioner of Income-tax (Appeals) [in short ‘CIT(A)’] held that it was relateable to asst. yr. 1974-75. Assessee’s stand was that it is allowable as deduction in 1975-76. Tribunal noticed that the last payment was made in January 1974, and the assessee was justified in waiting for some more time before the amount could be written off as a bad debt. Accordingly, it held that the short-term capital loss would be for the asst. yr. 1975-76.

We have heard learned counsel for the Revenue. There is no appearance on behalf of the assessee in spite of service of notice.

Learned counsel for the Revenue submitted that the CIT(A) had made an elaborate analysis of the factual position to hold that asst. yr. 1974-75 was the appropriate assessment year in which the adjustment was to be made. We find that the Tribunal has taken note of the factual aspects in detail to hold that asst. yr. 1975-76 would be appropriate assessment year. Conclusion is essentially factual giving rise to no question of law. We decline to answer the question referred.

Reference accordingly is disposed of.

[Citation : 250 ITR 615]

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