1986 (5) TMI 30 - SUPREME COURT

Whether the assessee was a dealer in shares in the accounting periods relevant to the assessment years 1959-60 and 1960-61 ?

Held that:- The dealings in the right shares by the assessee keeping in the background these were right shares and effect of non-subscription on the value of the original shares were not fully appreciated by the Tribunal. And, as such, the attitude of a person entitled to right shares for judging whether he was a dealer or investor was not viewed in proper dimension but merely noted by the Tribunal resulting in the non-consideration of a vital factor leading to an erroneous inference. The Tribunal, in this case, has undoubtedly noted the assessee's contention of nursing the investment. The Tribunal, however, has not considered in its order the actual position as to how the nursing of the investment was necessary. The Tribunal thus erred. In that view of the matter, the High Court was justified in interfering with the conclusion reached by the Tribunal. There is no reason to interfere with the order of the High Court.