AO held that  loss on sale of shares is capital loss and not eligible deduction. CIT(A) held that the amounts written off by the assessee were advanced to towards working capital ventures which those advances were made and the real character of transactions was akin to those applicable loans and not to equity investments. Loans written off is held to be allowable as business loss. Tribunal reversed the order of CIT(A). Allowing the appeal the Court held that according to the memorandum and articles of association of the assessee its main object was to promote, establish and run the State public sector enterprises for electronic items, manage, supervise, finance, advice, assist, aid or collaborate with any association, firm, company, enterprise, undertaking, institution or scheme for the advancement and development of all branches of electronics and of industries and business concerns based on or related to electronics. Thus, the main objects of the assessee were widely couched and included promotion and finance of electronic based industries. The order passed by the Tribunal was set aside and the order passed by the Commissioner (Appeals) was restored. (AY. 2001-02)