Share loss classification upheld as capital loss where records showed investment holdings, not trading stock.

The dispute concerned whether loss on sale of shares was a capital loss from realisation of investment or a trading loss from share-dealing business. The Tribunal treated the shares as investment holdings, relying on contemporaneous board resolutions, sale vouchers describing the transactions as sales of investments, and earlier balance-sheets showing the shares as investments. A later resolution passed after losses had already arisen was viewed as an attempt to recast the character of the loss. The SC upheld the Tribunal's finding, holding that it rested on material on record and that the evidence could not be reappraised merely because another view was possible.

---

---

Issues: Whether the Tribunal was justified in holding that the loss on sale of shares was a loss on realisation of investment and not a loss arising from share-dealing business.

Analysis: The assessment year was 1953-54 and the dispute turned on the character of the shares sold. The Tribunal relied on contemporaneous board resolutions describing the purchases as investments, sale vouchers describing the transactions as sales of investments, and the assessee's earlier balance-sheets showing the shares as investments. The later resolution of 27 August 1952 was viewed as having been passed after losses had already been suffered and as an attempt to recast a capital loss as a trading loss. The Court held that the Tribunal's conclusion rested on material on record and that it was not open to reappraise the evidence merely because another view might also be possible.

Conclusion: The finding that the shares were investment shares, and that the loss was a capital loss and not a trading loss, was upheld against the assessee.

---