| Case ID |
225e66ee-f1e6-4ee2-a00f-bd8c99d9319a |
| Body |
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| Case Number |
CIVIL APPEAL Nos. 1846 AND 1847 OF 1967 |
| Decision Date |
Jul 26, 1971 |
| Hearing Date |
|
| Decision |
The Supreme Court upheld the findings of the Tribunal that the losses incurred by the assessee were trading losses. The Tribunal had carefully considered the evidence presented and applied the relevant tests as established in prior rulings. The Court affirmed that the losses were incurred in the course of business and dismissed the appeals from the Revenue without any costs. This decision reinforced the legal understanding of trading losses under the Income-tax Act, emphasizing the importance of factual findings by the Tribunal and the High Court. |
| Summary |
In the landmark case of Commissioner of Income Tax v. Ashoka Marketing Co., the Supreme Court of India adjudicated on the nature of business losses for the assessment years 1952-53 and 1953-54. The core issue revolved around whether the losses incurred from the sale of certain shares could be classified as trading losses. The Revenue contended that these losses should not be considered trading losses due to the high purchase prices of the shares, which were allegedly aimed at enabling control over certain companies. However, the Tribunal, after a thorough examination of the facts and evidence, concluded that the shares were indeed purchased in the course of business and not to facilitate control by any individual. The High Court upheld the Tribunal's findings, leading to the Supreme Court's affirmation of the Tribunal's decision. This case is significant in the realm of income tax law, particularly in clarifying the parameters for determining trading losses. It highlights the importance of factual evidence in tax-related disputes, ensuring that genuine business activities are recognized and protected under the law. |
| Court |
Supreme Court of India
|
| Entities Involved |
Not available
|
| Judges |
K.S. Hegde,
A.N. Grover
|
| Lawyers |
Jagadish Swarup,
B.D. Sharma,
M.C. Chagla,
R. Gopalakrishnan
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Ashoka Marketing Co.
|
| Citations |
1972 SLD 409 = (1972) 83 ITR 439
|
| Other Citations |
CIT v. Dalmia Jain & Co. Ltd. [1967] 65 ITR 432 (Pat.)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
28(i)
|