PCIT Vs Jupiter Enterainment Ventures (P)Ltd. (Karnataka High Court)
Karnataka High Court dismissed the appeal filed by the revenue under section 260-A of the Income Tax Act as question raised by the Revenue is not a substantial question of law and it is a question of fact. Appeal u/s. 260-A can be entertained only when it involves substantial question of law.
Facts- The Assessing Authority disallowed a sum of Rs.11,27,00,000/-, which the assessee claimed it as business loss. The Assessing Authority had also disallowed certain other claims of the assessee. The assessee preferred appeal before the Commissioner of Income Tax (Appeals) and the appeal was partly allowed. The Commissioner of Income Tax (Appeals) while partly allowing the appeal, rejected asessee’s contention and held that a sum of Rs.11,27,00,000/- disallowed by the Assessing Authority was not a business loss for claiming deduction and allowed the appeal in respect of other disallowances. Aggrieved by the order of Commissioner of Income Tax (Appeals),assessee as well as Revenue preferred the appeals before the Appellate Tribunal.
The Appellate Tribunal allowed the appeal of the assessee holding that loss in question is a business loss and not a capital loss and dismissed the appeal of Revenue. Being aggrieved, the present appeal is filed.
