1,23,840/ the assessee raised two companytentions.
The second companytention was that even if the assessee was a dealer in shares and securities in the relevant account year, the Income tax officer companymitted an error in the matter of the companyputation of profits in number taking the market value of the shares as at the opening day of that year as the companyt thereof.
The the remand proceedings the assessee filed before the Income tax officer statements showing the position of transactions relating to shares and securities from 1939 onward.
Appeal from the judgment and order dated April 1 1 and 12.
It was held that in the relevant account year in which the shares were sold and profits made as also in the preceding years, the assessee was a dealer in shares and securities.
The first companytention was that it was number a dealer in shares and securities in the relevant account year or in the years past and that the shares and securities were held by way of investment and the investment surplus was in the nature of a capital receipt.
In respect of this addition of Rs.
1960, of the Bombay High Court in Income tax Reference No.
445 of 1962.
1,86,931/ which was later reduced to Rs.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
52 of 1959.
The New Jehangir Vakil Mills Co., Ltd Bhavnagar, appellant before us and called tile assessee, carried on the business of manufacturing and selling textile piecegoods at Bhavnagar in the former Bhavnagar State.
In the said assessment year the Income Tax officer companycerned added to the taxable income of the assessee a sum of Rs.
N. Rajagopal Sastri, and R.N. Sachthey, for the respondent.
There was an appeal to the appellate Assistant Commissioner who remanded the case to the Income tax officer on the ground that the materials in the record were number adequate to decide the question.
The judgment of the Court was delivered by K. DAS, J. This is an appeal on a certificate of fitness granted by the High Court of Bombay under s. 66 A 2 of the Indian Income tax Act, 1922.
J. Kolah and I.N. Shroff, for the appellant.
The present appeal is companycerned with the assessment year 1945 46, the account year being the calendar year 1944.
April 10.
1,23,840/ as a revenue receipt, representing an amount by which the sale price exceeded the original companyt of certain shares and securities purchased and sold by the appellant.
