Whether disallowance of loss on account of purchase and resale of UTI units should be restricted to the extent of dividend brought to tax by the AO

IN THE HIGH COURT AT CALCUTTA
Civil Appellate Jurisdiction
(Original Side)

Present:

The Hon’ble Mr. Justice Bhaskar Bhattacharya And

The Hon’ble Mr. Justice Sambuddha Chakrabarti

I.T.A. No. 27 of 2003

Eveready Industries India Ltd. Versus Commissioner of Income-Tax, Kolkata- II & Anr.

For the Appellant: Dr. Debi Prasad Paul, Mr. J. P. Khaitan.

For the Respondent: Mrs. Smita Das Dey.

Heard on. 24.02.2011

Judgment on : 4^th March, 2011.

Bhaskar Bhattacharya, J.:

This appeal under Section 260A of the Income-tax Act, 1961 is at the instance of an assessee and is directed against an order dated 27^th June, 2002 passed by the Income-tax Appellate Tribunal, “E” Bench, Kolkata, in I.T.A. No. 2600(Cal) of 1997 relating to the Assessment Year 1990-9 1 thereby partly allowing the appeal filed by the appellant and affirming the order of the Commissioner of Income-tax (Appeals) upholding the disallowance of loss on account of purchase and resale of UTI units. The Tribunal, however, made it  clear that the allowance of loss should be restricted to the extent of dividend brought to tax by the Assessing Officer and consequently, to that extent, the appeal was allowed.