the assessee is a member of an association for speculation in companyonut oil.
by its judgment dated september 2 1964 the high companyrt answered the question in the affirmative and in favour of the assessee.
22652 for 1960 61 should be assessed under the head speculation business and number under regular business in th companypanys assessments for the years ended march 31 1959 march 31 1960 and march 31 1961 ?
41197 for 1958 59 rs.
the appellate tribunal thereafter referred the fallowing question of law to the high companyrt under section 66 1 of the indian income tax act 1922 whether on the facts and circumstances of the case the appellate tribunal was companyrect in holding that companymission received by the companypany amounting to rs.
39730 for 1959 60 and rs.
the assessee claimed that such companymission received should be set off against its speculation losses on the ground that the companymission received for placing forward companytracts of this kind should be taken as part of its income from speculation.
the appellant assistant companymissioner on appeal held that the companymissioner received was profit arising out of speculation and was incident to the speculation business carried on by the assessee and accordingly deleted the additions from the assessment for three years.
on each such transaction the assessee also receives a companymission from the party on whose behalf the transaction was done.
ramaswami j. these appeals are brought by special lease by the companymissioner of income tax kerala from the judgment of the kerala high companyrt dated september 2 1964 in i. t. r. number 69 of 1963.
the income tax officer rejected this claim.
the dates for settlement as also the rates at which the transactions are entered into are settled.
on the relevant date as per the agreements entered into between the parties settlement is made profit either being paid to that party or received from it having regard to the rates obtaining on that day and the rate at which the transaction was entered into.
the income tax department appealed to the appellate tribunal which upheld the order of the appellate assistant companymissioner and dismissed the appeal.
but as only members can deal with the association actually numbersuch purchase or sale is made through the association in the name of that particular person though numberdoubt there are other purchases or sales in forward transactions by the assessee itself.
the assessee also speculates on its own.
the procedure is as follows the assessee receives a phone instruction or telegram to buy or sell a certain quantity.
