Ita/17/2010 Of The Commissioner Of Income Tax v. M/S.muthoot Leasing And Finance Ltd

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE M.L.JOSEPH FRANCIS THURSDAY, THE 6TH JANUARY 2011 / 16TH POUSHA 1932 ITA.No. 17 of 2010() -------------------- ITA.714/COCH/2007 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/APPELLANT: ------------------------------ THE COMMISSIONER OF INCOME TAX, COCHIN. BY ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT: --------------- M/S.MUTHOOT LEASING & FINANCE LTD., BANERJI ROAD, KOCHI. ADV. SRI.P.BALAKRISHNAN (E) SRI.V.SREEKUMAR SRI.MOHAN PULIKKAL THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 06/01/2011, THE COURT ON 06/01/2011 DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR &M.L.JOSEPH FRANCIS, JJ. .................................................................... I.T. Appeal No.17 of 2010 .................................................................... 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'sorder, we do not find the question raised by the Revenue is asubstantial question of law because all what the Tribunal has held isthat the purchase and sale of stock by the assessee is a businesstransaction and cannot be treated as sale of capital asset. It is seen fromthe orders that for the two preceding assessment years 2001-2002 and2002-2003 the department accepted the assessee's claim that thetransaction 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 instock trading against business income treating it as a business loss.Admittedly assessee has no opening stock or closing stock of anyshares and so much so, they were treating it as purchase and sales without retaining the asset for any appreciable period. Consequentlywe uphold the order of the Tribunal and dismiss the departmentalappeal. C.N.RAMACHANDRAN NAIRJudge M.L.JOSEPH FRANCISJudge pms