Eastern Aviation & Industries Ltd. v. CIT

208 ITR 1023High Court1994#8868 most cited

What is Eastern Aviation & Industries Ltd. v. CIT authority for?

Loss from share trading is to be taken into account, and if the loss from share trading exceeds the income from dividend or capital gains, the predominant nature of income can be considered as loss from share trading, which may impact the classification of business income or allow for set-off of losses.

12

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2015 to 2022.

Also referred to as

Eastern Aviation & Industries Ltd. v. CIT · 208 ITR 1023 · loss in share trading · dividend income · capital gains · speculative loss · Section 73

Judgments citing Eastern Aviation & Industries Ltd. v. CIT

DCIT Cir 4 (2)(1), Mumbai vs. M/S Quant Securities Pvt Ltd., Mumbai

In the result, the appeal of the revenue is dismissed

ITA 7756/MUM/2019[2014-15]Status: DisposedITAT Mumbai02 Sept 2022AY 2014-15
Section 143(3)Section 43(5)Section 73

…IN THE INCOME TAX APPELLATE TRIBUNAL, ‘D‘ BENCH MUMBAI BEFORE: SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI M.BALAGANESH, ACCOUNTANT MEMBER DCIT, CIR 4(2)(1) Vs. M/s. Quant Securities Pvt. Room No.642, 6th Floor Ltd., 612-617, 6th Floor Aayakar Bhawan M.K.Road Maker Chamber IV Mumbai – 400 020 Nariman Point, Mumbai- 400 021 PAN/GIR No.AAACQ1648R (Appellant) .. (Respondent) Assessee by Shri Jitendra Sanghvi & Shri Amit Khatiwala Revenue by Smt. Mahita Nair Date of Hearing 25/08/2022 Date of Pronouncement 02/09/2022 आदेश / O R D E R PER M. BALAGANESH (A.M): This appeal in ITA No.7756/Mum/2019 for A.Y.2014-15 a…

DCIT, Cir-7(1), Kolkata vs. M/S Cd Equipfinance Pvt. Ltd., Kolkata

Appeal is dismissed

ITA 2146/KOL/2019[2014-15]Status: DisposedITAT Kolkata19 Jul 2022AY 2014-15

Bench: Shri Sanjay Garg & Shri Girish Agrawalassessment Year: 2014-15 Deputy Commissioner C. D. Equifinance Pvt. Of Income-Tax Ltd. Vs. Circle-7(1) 37, Shakespeare Sarani Kolkata. Kolkata-700 017. (Pan: Aaccp7333A) (Appellant) (Respondent)

For Appellant: Smt. Ranu Biswas, Addl. CIT, DRFor Respondent: Shri Akkal Dudhwewala, FCA
Section 10(38)Section 115JSection 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCH “C”, KOLKATA BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER Assessment Year: 2014-15 Deputy Commissioner C. D. Equifinance Pvt. of Income-tax Ltd. Vs. Circle-7(1) 37, Shakespeare Sarani Kolkata. Kolkata-700 017. (PAN: AACCP7333A) (Appellant) (Respondent) Present for- Appellant : Smt. Ranu Biswas, Addl. CIT, DR Respondent : Shri Akkal Dudhwewala, FCA Date of Hearing : 28.04.2022 Date of Pronouncement : 20.07.2022 O R D E R PER GIRISH AGRAWAL, ACCOUNTANT MEMBER: This appeal by the revenue is arising out of the order of ld. C…

Magic Share Traders Ltd., Ahmedabad vs. The ITO, Ward-2(1)(4), Ahmedabad

In the result, appeal of the assessee is partly allowed

ITA 635/AHD/2018[2014-15]Status: DisposedITAT Ahmedabad11 Sept 2019AY 2014-15

Bench: Shri Pradip Kumar Kedia & Shri Mahavir Prasadआयकर अपील सं./I.T.A. No. 635/Ahd/2018 ("नधा"रण वष" / Assessment Year: 2014-15) Magic Share Traders Ltd. बनाम/ Ito 101, Akashganga Building, Ward- 2(1)(4) Vs. Nr. Gujarat College Road, Ahmedabad Ellis Bridge, Ahmedabad- 380006 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aae Cm9 542 L .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

For Appellant: Shri S. N. Soparkar & Parin
Section 43(5)Section 73

…en reported to be NIL as per the computation of income provided. Thus, the business loss clearly exceeds the aggregate of income/loss arising under non-business heads. The Hon’ble Calcutta High Court in the case of Eastern Aviation and Industries Ltd. vs. CIT 208 ITR 1023 has held that the expression ‘income’ or ‘profits and gains’ should be understood as including ‘loss’ also so that in one sense profits and gains represent positive income whereas losses represent negative income. The Hon’ble High Court thus observed that while judging the relative composition of GTI, one has to consider the absolute quantum of…

Jai Bhikshu Credit and Holding Ltd., New Delhi vs. DCIT, New Delhi

The appeal of the assessee are allowed

ITA 2911/DEL/2016[2012-13]Status: DisposedITAT Delhi28 May 2019AY 2012-13

Bench: Smt Beena A Pillai & Shri Prashant Maharishijai Bhikshu Credit & Holding Vs. Dcit, Ltd, F-591, Sarita Vihar, Circle-13(1), New Delhi New Delhi Pan: Aaacj0774F (Appellant) (Respondent)

For Appellant: Shri V P Guta & Anuvav KumarFor Respondent: Ms. Naina Soin Kapil, Sr. DR
Section 143(3)Section 73

…sessee was loss of Rs. 1,66,88,709/-. Thus, the income from dividend was Rs. 12,52,106/- and loss in shares was Rs. Jai Bhikshu Credit and Holding Vs. DCIT, 1,77.73.878/-, .As held by the Calcutta High Court in Eastern Aviation & Industries Ltd. v. CIT [1994] 208 ITR 1023/ 74 Taxman 641, the loss in share trading is also to be taken into account. Thus, the component of income/loss., on share trading is substantially higher than the income from dividend and there is no income reflected in the profit and loss account on account of loans and, advances. Therefore, it is not possible to appreciate the A/Rs contention…

Sm Holding & Finance P.Ltd, Mumbai vs. Asst CIT Cir 8(3), Mumbai

Appeal is dismissed

ITA 4689/MUM/2013[2009-10]Status: DisposedITAT Mumbai11 Oct 2018AY 2009-10

Bench: Hon’Ble Sh. R. C. Sharma, Am & Hon’Ble Sh. Sandeep Gosain, Jm आयकरअपीलसं./ I.T.A. No. 4689/Mum/2013

For Appellant: Shri F. BFor Respondent: Shri Ashish Kumar
Section 143(3)Section 14ASection 45(2)Section 73

…as earned business income of Rs.78,99,4447- and interest income of Rs. 12,12,8507-. The decision of Hon'ble Calcutta High Court in the case of Aryasthan Corporation Limited vs. CIT (253 ! ITR 401) and in the case of Eastern Aviation and Industries Ltd vs. CIT 208 ITR 1023 are squarely applicable to the facts of the case where it is held as under: ARYASTHAN CORPORATION LTD. VS. COMMISSIONER OF INCOME TAX. 7 I.T.A. No. 4689/Mum/2013 S. M Holding & Finance Pvt. Ltd. "Assessee-company having incurred loss in share dealings far in excess of income computed under the head "income from other sources* during the releva…

M/S. C D Equifinance Pvt. Ltd., Kolkata vs. DCIT, Cir-7(1), Kolkata

In the result, the appeal of the assessee is partly allowed

ITA 577/KOL/2016[2012-2013]Status: DisposedITAT Kolkata09 Feb 2018AY 2012-2013
Section 115JSection 143(3)

…s 115JA could be made with regard to the share of loss from the partnership firm. This stand of the assessee was not found acceptable by the A.O. By relying on the decision of Hon’ble Kolkata High Court in the case of Eastern Aviation & Industries Ltd. vs CIT 208 ITR 1023, he held that the general rule is that the ‘income includes loss’ and by applying the said rule, he held that the share of its loss in the partnership firm amounting to Rs. 18,91,12,786/- was liable to be added back while computing the book profit of the assessee company under section 115JB of the Act as per clause (ii) of Explanation (1) to sec…

ITO, WD-6(3), Kolkata vs. M/S Natraj Vinimay Pvt. Ltd., Kolkata

In the result, the appeal of the revenue is dismissed

ITA 1401/KOL/2016[2009-10]Status: DisposedITAT Kolkata10 Jan 2018AY 2009-10

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Shri M.Balaganesh, Am ] I.T.A No. 1401/Kol/2016 Assessment Year : 2009-10 Ito, Ward-6(3), Kolkata -Vs- M/S Natraj Vinimay Pvt. Ltd. [Pan: Aaccn 4643 D] (Appellant) (Respondent)

For Appellant: Shri G.Hangshing, CIT DRFor Respondent: Shri Subash Agarwal, Advocate
Section 143(3)Section 73

…of the assessee by treating the rental income as income from other sources. The Ld. CIT(A) based on these facts and placing reliance of the decision of the Hon’ble Jurisdictional High Court in the case of Eastern Aviation & Industries Ltd. vs. CIT reported in 208 ITR 1023 (Cal) and Mumbai Tribunal decision in the case of Rajan Enterprises Pvt. Ltd. vs. ITO reported in 41 ITD 469 ; Special Bench of Mumbai Tribunal in the case of ACIT vs. Concord Commercial Pvt. Ltd. reported in 95 ITD 117; Kolkata Tribunal decision in the case of ACIT vs. Blue Cheap Capital Market in I.T.A. No. 2211/Kol/2004 & Kolkata Tribunal in…

ITO, Corporate Ward-2(1), Chennai vs. Euroflora Bioland Pvt Ltd, Chennai

In the result, the appeal of Revenue is allowed for statistical purposes

ITA 2124/CHNY/2017[2008-09]Status: DisposedITAT Chennai05 Dec 2017AY 2008-09

Bench: Shri Chandra Poojari

For Appellant: Mr.S.Sridhar, AdvocateFor Respondent: 16.11.2017
Section 73Section 73(1)

…of 1999 dated 15.01.2014. 3.8 According to Ld.CIT(A), in the present case, the income from capital loss arrived by the assessee is `15,62,126/- and the loss from business is `5,24,494/-. The Calcutta High Court in the case of Eastern Aviation and Industries, 208 ITR 1023 held that profits and gains represent positive income whereas the losses represent negative income. Since in the case of the appellant, the negative income earned from capital gains is more than the negative income earned from business, the predominant part of income earned is from capital gains. Therefore the exception carved out in explanat…

Trapu Investments P.Ltd, Mumbai vs. DCIT Cir 3(3), Mumbai

In the result, appeal filed by the assessee is treated as partly allowed

ITA 1123/MUM/2012[2008-09]Status: DisposedITAT Mumbai19 Apr 2017AY 2008-09

Bench: Shri B.R. Baskaran (Am)& Shri Ramlal Negi (Jm)

Section 73

…at ` 1.34 crores and claimed the same as business loss. The Assessing Officer placed reliance to Explanation 1 to section 73 of the Act and also decision rendered by Hon'ble Calcutta High Court in the case of M/s. Eastern Aviation and Industries Ltd. Vs. CIT (208 ITR 1023) and held that the loss suffered by the assessee-company in share transaction shall be assessed as speculation loss. Accordingly, he assessed the loss of ` 1.34 crores as speculation loss. In the appellate proceedings, the learned CIT(A) confirmed the order passed by the Assessing Officer by following the decision rendered by Hon'ble Bombay High…

ITO, WD-12(3), Kolkata vs. Amrabathi Investra Pvt. Ltd., Kolkata

In the result the appeal by the revenue is dismissed

ITA 1315/KOL/2014[2008-2009]Status: DisposedITAT Kolkata05 Apr 2017AY 2008-2009

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Shri M.Balaganesh, Am ] Assessment Year : 2008-09

For Appellant: Shri G.Mallikarjuna, CIT(DR)For Respondent: Shri N.K.Poddar, Sr.Advocate & Shri Gautam M.Bavishi,FCA
Section 73Section 73(1)

…and 2005-06 were also filed before CIT(A). ITA No.1315/Kol/2014 Amrabathi Investra Pvt. Ltd. A.Y.2008-09 8. With regard to the action of the AO in relying on the decision of the Hon'ble Calcutta High Court's in the case of M/s Eastern Aviation & Industries 208 ITR 1023, it was argued that the said decision was not applicable to the facts of the Assessee’s case. The Assessee had sought exception from the provisions of Explanation to Sec.73 only on the basis of "Income criterion" and not on the basis of "principal business" criterion. Without prejudice to the above submissions, it was submitted that the action o…

M/S. A K Capital Markets Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is partly allowed

ITA 6859/DEL/2014[2006-07]Status: DisposedITAT Delhi04 Dec 2015AY 2006-07

Bench: Sh. N. K. Sainiita No. 6859/Del/2014 : Asstt. Year : 2006-07 A. K. Capital Markets Ltd., Vs Dcit, Central Circle-2, 609, 6Th Floor, Antriksh Bhawan, 22, New Delhi Kasturba Gandhi Marg, Connaught Place, New Delhi-110001 (Appellant) (Respondent) Pan No. Aadca9960D Assessee By : Sh. Ved Jain, Adv. Revenue By : Sh. Sarabhjit Singh, Dr Date Of Hearing : 16.09.2015 Date Of Pronouncement : 04.12.2015 Order

For Appellant: Sh. Ved Jain, AdvFor Respondent: Sh. Sarabhjit Singh, DR
Section 132Section 133ASection 14ASection 153ASection 43(5)

…treatment of the same as a speculative loss by the Revenue. In so deciding, we also endorse the reliance by the Revenue on the decisions by the hon'ble high courts and tribunal, as cited in their orders, viz. Eastern Aviation & Industries Ltd. vs. CIT [1994] 208 ITR 1023 (Cal); CIT vs. Parkview Properties (P.) Ltd. [2003] 261 ITR 473 (Cal); JRD Securities Pvt. Ltd. vs. ACIT (in ITA No. 4943 of 2002 dated 26.10.2005); Associated Capital Market Mgnt. Pvt. Ltd. Vs. Jt. CIT (in ITA No. 20 A.K. Capital Markets Ltd. 1103/Mum/2001); and Prudential Construction Co. Ltd. Vs. Asst. CIT [2000] 75 ITD 338 (Hyd). We decide…

ITO 4(2)(4), Mumbai vs. Marudhar Mudra P.Ltd, Mumbai

The appeal of the Revenue is dismissed

ITA 3166/MUM/2012[2007-08]Status: DisposedITAT Mumbai20 Nov 2015AY 2007-08

Bench: Shri Joginder Singh & Shri Rajesh Kumarassessment Year 2007-08 Ito-4(2)(4), M/S Marudhar Mudra Pvt. Room No.647, 6Th Floor, Ltd. बनाम/ M.K. Road, 101-102, Chartered House, Vs. Aayakar Bhavan, 293-297, Dr. C.H.Street, Mumbai-400020 Marine Lines, Mumbai-400002 (राज"व /Revenue) ("नधा"रती /Assessee) Pan. No.Aabcm5764F

Section 73

…" is "negative profit". Both positive arid negative profits are of revenue character. Both must enter into the computation, wherever it becomes material, in the same mode of the taxable income of the assessee. In Eastern Aviation Industries Ltd. Vs CIT (1994) 208 ITR 1023 (Cal): the loss of Rs.28,50,358 as per Profit and Loss Account comprised loss of s.7,95,447 from speculative share transactions, loss of 5.12,90,145 from regular share dealing business and interest payments of Rs.8,21,400 pertaining to the shares dealing business. The only income was by way of dividends amounting to Is.3,87,603. On these facts,…