Kerala High Court
The Commissioner Of Income Tax vs M/S.Muthoot Leasing & Finance Ltd on 6 January, 2011
Bench: C.N.Ramachandran Nair, M.L.Joseph Francis
IN THE HIGH COURT OF KERALA AT ERNAKULAM
ITA.No. 17 of 2010()
1. THE COMMISSIONER OF INCOME TAX,
... Petitioner
Vs
1. M/S.MUTHOOT LEASING & FINANCE LTD.,
... Respondent
For Petitioner :SRI.JOSE JOSEPH, SC, FOR INCOME TAX
For Respondent :SRI.P.BALAKRISHNAN (E)
The Hon'ble MR. Justice C.N.RAMACHANDRAN NAIR
The Hon'ble MR. Justice M.L.JOSEPH FRANCIS
Dated :06/01/2011
O R D E R
C.N.RAMACHANDRAN NAIR &
M.L.JOSEPH FRANCIS, JJ.
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I.T. Appeal No.17 of 2010
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Dated this the 6th day of January, 2011.
JUDGMENT
Ramachandran Nair, J.
Heard Standing Counsel for the appellant and Adv. Sri.P.Balakrishnan appearing for the respondent-assessee.
2. After hearing both sides and after going through the Tribunal's order, we do not find the question raised by the Revenue is a substantial question of law because all what the Tribunal has held is that the purchase and sale of stock by the assessee is a business transaction and cannot be treated as sale of capital asset. It is seen from the orders that for the two preceding assessment years 2001-2002 and 2002-2003 the department accepted the assessee's claim that the transaction is trading and the loss is a business loss. In this year also, the position is not different in as much as the assessee set off loss in stock trading against business income treating it as a business loss. Admittedly assessee has no opening stock or closing stock of any shares and so much so, they were treating it as purchase and sales 2 without retaining the asset for any appreciable period. Consequently we uphold the order of the Tribunal and dismiss the departmental appeal.
C.N.RAMACHANDRAN NAIR Judge M.L.JOSEPH FRANCIS Judge pms