1971 (7) TMI 6 - SC - Income Tax

Capital Loss - Preference Shares - Solitary transaction of purchase of preference shares from a company belonging to the same group - activity of the assessee was not a trading activity. It was merely an investment. Therefore, the loss was not a trading loss

Summary

The Supreme Court dismissed the appeal against the High Court's decision that a loss from the sale of shares was not deductible as a trading loss. The company, part of the Dalmia group, incurred the loss from selling preference shares in another group company. The Tribunal found it was an investment, not a trading activity, due to specific circumstances. The appeal was dismissed with costs.