CIT Vs. PRASAD AND CO

JUDGEMENT

(1.) THIS appeal by Revenue under Section 260A of the Income Tax Act, 1961 (Act, for short) impugns the order dated 31st March, 2010 passed by the Income Tax Appellate Tribunal (for short, the tribunal) in the case of Prasad and Company Pvt. Ltd. The appeal pertains to the assessment year 2000-01.

(2.) THE following two issues have been raised by the Revenue:-

(3.) IT is clear from the aforesaid paragraph that what was doubted and debated by the Assessing Officer, was whether the transaction resulting in bad debt were undertaken in the individual capacity of Berijender Ahuja or on behalf of the company employing him. The Assessing Officer did not doubt that the transactions were undertaken and sale/purchase of shares had taken place. There is clear distinction between the two. This becomes apparent when we examine the next paragraph of the assessment order, which for the sake of convenience is reproduced below:-