84,862/ in the income tax return filed by it.
The assessee carried an appeal to the Appellate Assistant Commissioner and companytended that this loss of Rs.
It thus acquired a total number of 1686 shares.
28,662/ should be carried forward and set off against capital gains if any, in future.
84,862 on the ground that it was a loss of a capital nature.
From the judgment and order dated the 24th January, 1969 of the Delhi High Court in Income Tax Ref.
On 3 9 53, i.e. during the relevant previous year the assessee sold all these 1686 shares to M s. Escorts Agents Ltd. for Rs.
C. Desai, J. Ramamurthy and R. N. Sachthey, for the appellant.
K. Sen and H. K. Puri, for the respondent.
The assessee respondent is a Private Limited Company.
The assessment year under reference is 1955 56 and the relevant previous year is from 1 5 1953 to 30 4 1954.
1,12,400/ from M s. Escorts AM Ltd. In the relevant accounting year ending on 30 4 195 3 the assessee received 562 bonus shares from the same companypany.
The Judgment of the Court was delivered by SARKARIA, J. This appeal is directed against the Judgment, dated 24 1 1969, of the High Court of Delhi answering in the affirmative the following question referred to it under s. 66 1 of the Indian Income tax Act, 1922 for short, the Act by the Commissioner of Income tax .
CIVIL APPELLATE JURISDICTION Civil Appeal No.
28,662/ companyld be determined and carried forward in accordance with the provisions of Section 24 of the Indian Income tax Act, 1922, when the provisions of section 12B of the Income tax Act, 1922 itself were number applicable in the assessment year 1955 56.
Ltd. at a companyt of Rs.
The Income tax Officer disallowed the entire loss of Rs.
Whether on the facts and in the circumstances of the case the capital loss of Rs.
51 of 1966.
In this companynection, Shri Sen has referred to Commissioner of Income tax, Punjab v. Kulu Valley Transport Co. Ltd. 1 , Jaikishan Gopikishan and Sons Commissioner of Income tax, M.P. 2 and Commissioner of Income tax, Madhya Pradesh v. Khushat Chand Daga 3 .
On 10 1 1952 the assessee pur chased 1124 shares of M s. Intercontinent Travancore Pvt.
28,662/ only.
84,300 and claimed a loss of Rs.
He further held that this loss of Rs.
494 of 1970.
Against the decision of the Appellate Assistant Commissioner the assessee preferred an appeal before the Tribunal, challenging the findings of the Commissioner both in regard to the amount of loss and its nature.
84,862/ was a revenue loss arising out of dealing in shares.
28,662/ was number a revenue loss, but a capital loss arising out of change of investments.
