1951 52 2174 1,177 3351 3.
The Income tax Tribunal, on a further hearing, held that the receipt of interest from securities was as much the assessees business as its other banking activities like receiving deposits from the clients and withdrawals by them.
The High Court, having regard to the decision of this Court in United Commercial Bank Ltd., Calcutta v. Commissioner of Income tax, West Bangal 1 remitted the case to the Income tax Tribunal, Hyderabad Bench, for making a fuller statement of case on the question whether these securities in question formed part of the trading assets held by the assessee in the companyrse of its business as a banker and whether its dealing with the securities from which it received interest was as much the assessees business as receiving deposits from clients and withdrawals by them.
Appeals by special leave from the judgment and order dated August 8, 1961 of the Andhra Pradesh High Court in Case Referred No.
The view of the Income tax Officer was companyfirmed, on appeal, by the Appellate Assistant Commissioner and, on further appeal, by the Income tax Appellate Tribunal.
Hence the present appeals.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos./55 157 1964.
1952 53 1885 9,121 11,006 For the three succeeding years the department showed the income under the said two separate heads but allowed the said loss to be set off against the income under the head business and disallowed it against the income under the head interest on securties.
The following question was referred by the Tribunal to the High Court for its opinion Whether on the facts and in the circumstances of the case, the assessee was entitled to set off the business loss of Rs.
25 of 1957.
55,912 brought forward from the preceding year against the entire income including interest on securities held by the assessee.
V. Gupte, Solicitor General, N. D. Karkhanis and R.N. Sachthey, for the appellant in all the appeals .
S. Pathak, B. Datta and T. Satyanarayan, for the respondent in all the appeals .
1950 51 5,191 886 6077 2.
For the assessment year 194950 its income was assessed as follows Interest on securities Rs.
84,880 Other banking activities Rs.
55,912 The following tabular form shows at a glance the factual position in regard to the income of the assessee under different heads during the said three years Business Year of assessment Interest on income or securities loss as finally Total decided by the A.A.C. 1 2 3 4 Rs.
64,400 loss Net loss Rs.
The, Cocanada Bank Ltd., Kakinada, hereinafter called the assessee, is a private limited companypany carrying on banking business with its head office at Kakinada and a branch at Dayal Bagh.
The material facts may briefly be stated.
The assessees sources of income are banking business and interest from government securities.
