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TMI Blog1965 (9) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... : VEERASWAMI., VENKATADRI. JUDGMENT The judgment of the court was delivered by VEERASWAMI J. - The question referred to us is: "Whether, on the facts and in the circumstances of the case, the loss of 21,819 dollars on the sale of shares was a business loss deductible under section 10 of the Income-tax Act for the assessment year 1958-59?" The assessee is a firm of partnership owning ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly deal in shares of other companies during the relevant period. He came to the conclusion that the purchase of shares was only as an investment and therefore the loss resulting from the sale of the shares should be regarded as a capital loss. This view was maintained in further appeals of the assessee. The Tribunal's order on this matter is cryptic and reads: " The assessee is a money-lender, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ivasan for the assessee, out of the funds of the money-lending business. In our view, it does not necessarily follow from that mere fact that the shares formed part of the stock-in-trade of the money-lending business. Nor can it be said that the fact that the shares were shown as an asset in the books of the money-lending business, invested the shares with the character of stock-in-trade of that b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , in this case no evidence appears to have been adduced to show the treatment of the shares and to establish that by such treatment of the shares, they were, or became, part of the stock-in-trade of the money-lending business. Apparently, the Tribunal had this approach in mind, though it did not in so many words express it in its order. The question referred to us is answered against the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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