9911796707
TMI Blog1961 (1) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... he Tribunal misdirected itself in law in omitting to consider certain material facts which were taken into account by the Appellate Assistant Commissioner and expressly mentioned in the Appellate Assistant Commissioner's order, including the fact that the assessee had been holding shares in several other companies as stock-intrade and this position has been accepted by the department although in those shares there have been no sales ? Held that:- High Court was right in refusing to call for a statement of the case under section 66(2) of the Income-tax Act. The conclusion of the Tribunal was amply supported by evidence. It cannot be said that because in the previous years the shares were held to be stock-in-trade, they must be similarly trea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shares between November, 1944, and October, 1948. By November, 1948, the appellants held 99 ordinary shares. The appellants also purchased at diverse times 6,780 preference shares of the Sholapur Mills. All these shares were entered in the books of account of the appellants as stock-in-trade and valued accordingly at the end of each accounting period. During all these years, not a single share, ordinary or preference, was sold by the appellants. The following table sets out the profit and loss in respect of these shares calculated by the appellants according to the method of valuation of stock adopted by the appellants. --------------------------------------------------------------------------------------------------------------------- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hese orders were not challenged in appeals to the Income-tax Appellate Tribunal. In the assessment year 1948-49, the appellants did not furnish return and they were assessed to tax under section 23(4) of the Income-tax Act. For the assessment year 1949-50, the appellants furnished their return claiming that they incurred a loss of Rs. 3,33,851 in the shares of the Sholapur Mills. This was computed on the alleged difference between the market value of the shares at the close of the previous year of account and the market value at the end of the accounting period, the shares being treated as stock-in-trade. The Income-tax Officer found that the appellants had inflated the loss by Rs. 1,85,000 and that the shares being capital investment and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the department to hold for the assessment years 1949-50 that the said shares do not represent the assessee's stock-in-trade ? (3) Whether the Tribunal misdirected itself in law in omitting to consider certain material facts which were taken into account by the Appellate Assistant Commissioner and expressly mentioned in the Appellate Assistant Commissioner's order, including the fact that the assessee had been holding shares in several other companies as stock-intrade and this position has been accepted by the department although in those shares there have been no sales ? " The appellants then petitioned the High Court for an order directing the Tribunal to draw up a statement of the case and to refer to the High Court the three questi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
