1 itxal593-07 agk IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL (L) NO.593 OF 2007 The Commissioner of Income Tax, Central - I, Mumbai ..Appellant. Versus M/s.Imfa Holdings Private Limited ..Respondent. Mr.Vimal Gupta for the appellant. Mr.Mandar Vaidya i/by Roys' Law Firm for the respondent. CORAM : J.P. Devadhar & A.A. Sayed, JJ. DATE : 18th April, 2011. P.C. : 1. The Commissioner of Income Tax is aggrieved by the order of the Income Tax Appellate Tribunal, whereby addition of Rs.24,97,500/- made by the assessing officer by disallowing the bad debts claimed by the assessee has been deleted by the Income Tax Appellate Tribunal. 2. In the present case, the assessee claimed to have advanced Rs. 24,97,500/- for purchase of shares of Dhanlaxmi Bank Limited. Since the shares were not delivered for a considerable period of time, the assessee claimed deduction of the amounts as bad debts. The assessing officer 2 itxal593-07 rejected the claim of the assessee on the ground that the assessee was not engaged in the business of purchasing shares. The Tribunal while deleting the additions made by the assessing officer has recorded a finding of fact that in the assessment years 2001-02 and 2002-03 the assessee has in fact received part of the shares and that the assessee has offered the corresponding value of the shares as income under Section 41(1) of the Income Tax Act, 1961 in those assessment years. Thus, the Tribunal noted that in the assessment years 2001-02 and 2002-03, the assessing officer has in fact accepted the contention of the assessee and has enhanced the value of the shares received by the assessee. In these circumstances, the decision of the Tribunal in accepting the contention of the assessee that the amounts written off were on revenue account and not on capital account cannot be faulted. 3. As the decision of the Tribunal is based on finding of fact, in our opinion, no substantial question of law arises from the order of the Tribunal. The appeal is accordingly dismissed with no order as to costs. (A.A. Sayed, J.) (J.P. Devadhar, J.)