1979 (10) TMI 3

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....lates to the application of Expln. 2 to s. 24(1) of the Indian I.T. Act. The assessee deals in paper, hessian and B. Twill. After assessment by the ITO for the assessment year 1955-56, and thereafter an appeal disposed of by the AAC, the Income-tax Appellate Tribunal in second appeal found that certain transactions entered into by the assessee could not be described as "speculative transactions" ....

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....arties, and the transactions were settled by handing over delivery orders. There is no evidence that actual delivery of the goods was ever effected either to the assessee or to subsequent purchasers from him. All that passed were the delivery orders and payment by cheque. The High Court has taken the view that in the absence of actual delivery the transactions attracted Expln. 2 to s. 24(1) and mu....