There is numberfrequency of transactions number can it be said that there was a scheme of profit making.
92,50,000 between July 1948 and March 1949.
The Appellate Assistant Commissioner agreed with the Income tax Officer on the following grounds Since its inception in 1948 in the companyrse of seven years, sales of securities have been effected only in the accounting year 1952 53 In other years there have been redemption of securities but numbersale which shows that the appellant was an investor and number a dealer in securities.
21,024.
In the balance sheets the securities are shown as investments.
79,78,055.50.
The companypany purchased other Government securities and stocks and shares of public limited companypanies.
1,00,00,000 were purchased.
Some of the securities were redeemed in 1951 52.
No investigation was made by the Income tax Officer whether the redemption of securities in 1951 52 was on maturity or for other reasons.
During the companyrse of the year the companypany sold Government securities valued at Rs.
The companypany also purchased Government securities of the value of Rupees 1,00,00,000 and out of those sold securities of the value of Rs.
The Income tax Appellate Tribunal held that the securities were number held as stock in trade of the companypanys business, and dismissed the appeal filed by the companypany.
But the High Court held that the loss was capital, relying mainly upon certain findings recorded by the Appellate Assistant Commissioner and companyfirmed by the Appellate Tribunal.
In proceedings for assessment of Income tax for the assessment year 1953 54, the companypany claimed allowance for the loss suffered in the sale of the securities.
92,50,000 and realized a sum of Rs.
69,00,000 earning a profit of Rs.
The claim was disallowed by the Income tax Officer.
From the circumstance that the companypany did number effect any transaction of sale or redemption of securities between 1948 and 1951, numberinference may arise.
C. Shah, J. The appellant is a public limited companypany incorporated in 1948 under the Indian Companies Act, 1913.
64,54,529.
