1960 (8) TMI 86

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....an, J. The following question of law has been referred to us by the Income-tax Appellate Tribunal, Delhi Bench, under section 66 of the Income-tax Act (XI of 1922): "Whether, on the facts and in the circumstances of the case, any business was carried on by the assessee and whether the said loss of ₹ 4,43,248 suffered by the assessee was a loss of capital nature and, as such, not an a....

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....revenue loss. The Department treated it as a loss of a capital nature and, therefore, its deduction was not allowed. On an appeal to the Appellate Tribunal by the company, the plea of the company prevailed and the Appellate Tribunal held that it was a loss of revenue nature and, therefore, a permissible deduction. The Department being dissatisfied with this decision moved the Appellate Tribunal un....

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.... on' of the banking business." It cannot be disputed that the buying and selling of securities is part of banking business. Reference in this connection may be made to section 6(1)(a) of the Banking Companies Act (X of 1949) and its counterpart in the Companies Act (VII of 1913), namely, section 277F. The securities in question were sold by the company to meet its liabilities as a banker....