Itta/260/2013 Of Commissioner Of Income Tax-Ii v. M/S.gulf Oil Corporation Ltd

IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH,HYDERABAD THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTAAND THE HON’BLE Ms. JUSTICE G. ROHINI I.T.T.A. No. 260 of 2013 DATE: 12.07.2013 Between: The Commissioner of Income Tax-IIHyderabad. … Appellant And M/s. Gulf Oil Corporation Limited,Hyderabad. … Respondent This court made the following: THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTAANDTHE HON’BLE Ms. JUSTICE G. ROHINII.T.T.A. No. 260 of 2013 JUDGMENT:(Per the Hon’ble the Chief Justice Sri Kalyan Jyoti Sengupta) This appeal is preferred and sought to be admitted on the following suggested questions of law. “(A) Whether on the facts and circumstances of the case, theappellate Tribunal is justified in directing grant of deduction ofinvestments which are capital in nature as business loss? (B) Whether on the facts and circumstances of the case, theappellate Tribunal is justified in holding that there is businesspurpose and commercial expediency in writing off advances madeto ECCL though there is nothing to show existence of the tradingtransactions between the two concerns?” We have heard Sri S.R. Ashok, learned senior counsel for the appellantand gone through the impugned judgment and order of the learned Tribunal. It appears that on the first question the learned Tribunal has examinedthe matter in detail and after following the judgment of the Supreme Court in S.A. Builders[[1]], it allowed the claim of the assessee for deduction ofRs.1,41,21,000/- being advance given to its subsidiary company, M/s. EECL,since the same is written off as irrecoverable, consequent upon the lattercompany having been ordered to be wound up by the BIFR. Therefore, wedo not find any illegality or infirmity in the judgment and order of the learnedTribunal. We are of the view that the point of law has correctly been decided and further decision by this Court is not warranted. The appeal is accordingly dismissed. ______________________K.J. SENGUPTA, CJ_______________G. ROHINI, J Date: 12.07.2013ES [1]280 ITR 1