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[Cites 1, Cited by 14]

Calcutta High Court

C.I.T vs M/S. Global Capital Markets Ltd on 3 December, 2010

Author: Kalyan Jyoti Sengupta

Bench: Sengupta, Kanchan Chakraborty

                            ITA No. 237 of 2009
                     IN THE HIGH COURT AT CALCUTTA
                            Special Jurisdiction
                               [Income Tax]
                              ORIGINAL SIDE


                            C.I.T., KOLKATA-II
                                   Versus
                    M/S. GLOBAL CAPITAL MARKETS LTD.



BEFORE:

The Hon'ble JUSTICE SENGUPTA
                     AND
The Hon'ble JUSTICE KANCHAN CHAKRABORTY

Date : 3rd December, 2010.


              Having heard Ms. Anwari Quaraishi, learned counsel for the

appellant and having gone through the impugned judgment and order, we are of

the view that in this matter the following substantial questions of law in relation

to Assessment Year 1998-99 are involved for rendering decision by this Court.

             Hence, we admit the appeal on those following substantial questions

of law:

             "(a)    Whether on the facts and in the circumstances of the case

                     the Income Tax Appellate Tribunal was justified in holding

                     that the loss from share trading business amounting to

                     Rs.21,00,728/- should not be treated as deemed speculation

                     loss ?

             (b)     Whether on the facts and in the circumstances of the case

                     the Income Tax Appellate Tribunal failed to appreciate that

                     as per the Memorandum of Association the main business of

                     the assessee company is share trading and therefore loss
                                            2
                        from share trading business is covered by the Explanation to

                        Section 73 of the Income Tax Act, 1961?

                 (c)    Whether on the facts and in the circumstances of the case

                        the Income Tax Appellate Tribunal was justified in holding

                        that second exception of the Explanation to Section 73 of the

                        Income Tax Act, 1961 is attracted as the assessee's principal

                        business is granting loans and advances whereas as per

                        Memorandum of Association of the company it is only

                        ancillary object, not included in the main objects?"

                 We also notice that the learned Tribunal has not rendered any

   decision whatsoever. The Tribunal has not given its own reasoning.

                 Let requisite number of paper books be filed within two months from

   date.

                 Let notices of appeal be served by the department on the

   respondent.

Liberty to mention for early hearing.

The application is disposed of.

All parties concerned are to act on a signed photocopy of this order on the usual undertakings.

(KALYAN JYOTI SENGUPTA, J.) (KANCHAN CHAKRABORTY, J.) sm AR[CR]