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TMI Blog1990 (10) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellate Tribunal has referred the following question under section 256(1) of the Income-tax Act, 1961 : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the loss of Rs. 22,988 was a speculation loss?" The assessee is a registered firm. It deals in oil cakes. For the assessment year 1974-75, it claimed a loss, of Rs. 42,931 comprising three item ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer but on a different reasoning. The Appellate Assistant Commissioner held that since the payment of loss is alleged to have been made in November, 1972, it falls in the assessment year 1973-74 and is not relevant to the assessment year 1974-75. On further appeal, the Tribunal dismissed the appeal on an entirely different ground. It took into consideration the contents of a debit note placed befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich the Income-tax Officer and the Appellate Assistant Commissioner disallowed the claim. It dismissed the appeal entirely on new ground. From the paper book supplied to us it does not appear that the Income-tax Officer or the Appellate Assistant Commissioner referred to the speculative nature of the transaction at any stage. Yet, having regard to the limitations of a reference under section 256 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence of prices prevailing on the date of contract and on the date of breach. It was not necessary for the assessee to prove that the Gujarat party actually purchased two wagons of oil cakes from a third party and suffered loss on that account.
For the above reasons, we have to answer the question referred in the negative, that is, in favour of the assessee and against the Revenue. No costs. X X X X Extracts X X X X X X X X Extracts X X X X
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