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TMI Blog1970 (10) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 14,581. This loss was claimed by the company from the Income-tax Officer as a business loss but was disallowed on the ground that it was a capital loss. The company filed an appeal before the Appellate Assistant Commissioner which was accepted on the ground that the company was a dealer in shares and securities and that this business was mentioned as one of the businesses which the company was allowed to carry on in its memorandum of association. The revenue filed an appeal before the Income-tax Appellate Tribunal. On December 10, 1963, the Tribunal passed an order to the effect that the material brought on the record was not sufficient to decide the appeal and remanded the case to the Income-tax Officer directing him-- (i-a) to obtai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... company hid been rightly held as an investor in securities and not a dealer therein ?" The details of securities purchased and sold by the assessee-company show that on January 15, 1946, securities worth Rs. 5,00,000 were purchased out of which securities of the value of Rs. 2,50,000 were sold on July 15, 1948, and the remaining securities worth Rs. 2,50,000, were sold on October 28, 1949. In the first sale made on July 15, 1948, there was neither profit nor loss but in the second sale made on October 28, 1949, there was a loss of Rs. 2,500. The company then purchased securities worth Rs. 4,000 in 1952 which were sold on July 23, 1957, resulting in a loss of Rs. 145. The company purchased securities of the value of Rs. 2,00,000 on Octobe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egarding the sale of securities of Rs. 2,00,000 on November 22, 1957, there existed resolution No. 3 dated October 16, 1957. It was also mentioned in the remand report that the balance-sheets of the assessee-company for the earlier years showed that these securities were treated as non-trading investment. A letter dated October 7, 1957, written by the Bombay branch of the assessee-company was also handed over to the Income-tax Officer which was sent by him along with the remand report and this letter suggested that the intention of the assessee-company was to hold the securities for earning interest and not for dealing in them. This letter clearly showed that the motive, for the sale was not the reaping of the profits or reducing the losses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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