The Appellate Assistant Commissioner held that the business in shares and the business in other companymodities were number the same business within the meaning of s. 24 2 of the Income tax Act, 1922, as then in force.
In the view of the Income tax Officer, even if the loss be treated as a trading loss it companyld number be set off against the business income of the Company, because the loss resulted from transactions in shares which companystituted a business distinct from the business in other companymodities.
Appeals by special leave from the judgment and order dated March 26, 1965 of the Calcutta High Court in Income tax Reference No.
120 oF 1961.
1,00,777.
3,71,700 in the sale of share of public limited companypanies.
3,39,899 and declined to take into account the loss suffered by the Company in the share transactions.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
In appeal against the order to the Appellate Assistant Com missioner, the order of the Income tax Officer was companyfirmed.
In proceedings for assessment of income for the assessment year 1952 53 the Income tax Officer companyputed the income of the Company from its business at Rs.
Pal, T. A. Ramachandran and D. N. Gupta, for the appel lant in both the appeals .
In the year of account 1949 the Company suffered a loss of Rs.
2538 and 2539 of 1966.
The appeal filed before the Appellate Assistant Commissioner was unsuccessful.
In proceedings for assessment of income tax for the assessment year 1950 51, the lncome tax Officer disallowed the claim to set off loss against the profits from transactions in other companymodities in that year.
The Judgment of the Court was delivered by Shah,, J. The appellant is a public limited companypany doing business as a dealer in diverse companymodities, and also in stocks and shares.
Sen, S. K. Aiyar and B. D. Sharma, for the respondent in both the appeals .
In the meanwhile assessment for the year 1951 52 was company pleted, and the income of the Company was companyputed at Rs.
But the Appellate Tribunal upheld the claim of the Company.
The Company maintains its accounts according to the calendar year.
