9911796707
TMI Blog1989 (2) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... ending suit shows that the transactions in British India Corporation shares were real, the loss claimed amounting to Rs. 3,82,278 will have to be allowed as a revenue loss ? (ii), Whether, on a consideration of the totality of the facts and circumstances of the case, the Tribunal should have held that even assuming that the said British India Corporation shares were sold to Sohanlal and Co., the loss arising therefrom was not a trading loss ?" In this case, the dispute relates to certain transactions of shares of British India Corporation. These shares were purchased along with some other shares of some other companies by Jessop and Co. The dealings in purchasing shares of British India Corporation resulted in a loss of Rs. 75,000 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hares from the assessee and the assessee had filed Suit No. 1508 of 1959 in the Calcutta High Court for recovery of the amount due from Sohanlal and Co. He also found that there was no evidence of shares having been delivered. In the circumstances, he came to the conclusion that the loss suffered by the assessee in the transactions could not be allowed as a trading loss because the dealings in the shares did not constitute a normal trading activity of the assessee. This finding of fact has been stated in the statement of the case made to the High Court by the Tribunal. Thereafter, the Tribunal mentioned in brief the disputes by the following order: "Regarding the British India Corporation shares, the question is dependent on the suits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellate Assistant Commissioner has pointed out certain facts, viz., Mr. H. D. Mundhra was the only person who was a director of the company and the shares were being dealt with by the company in which H. D. Mundhra was appointed also as a director. Secondly, while In the balance-sheets, the directors showed the loss at the time of sale of the shares, the directors had described the purchase and sale thereof as investments. Thirdly, in the balance-sheet of the company, the shares were shown as investments.. The Tribunal has simply stated that "the assessee had embarked on transactions in shares, but there is nothing to show that the assessee was trying to acquire the shares with any other motive than of commercial nature." This observ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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