1971 (8) TMI 29

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....E J.-Civil Appeal No. 1126 of 1971 by special leave arises from the decision of the High Court of Calcutta in a reference under section 66(1) of the Indian Income-tax Act, 1922-hereinafter referred to as " the Act ". The assessment year with which we are concerned in this appeal is 1955-56, the previous year ending on March 31, 1955. The facts as found by the Tribunal are as follows : During....

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.... with all the findings reached by the Income-tax Officer. He came to the conclusion that the sale transaction was genuine but the loss incurred was a capital loss. On a further appeal the Tribunal agreed with the Appellate Assistant Commissioner's conclusion that the loss in question was a capital loss. Hence, it did not go into the question whether the transaction was a genuine one. It assumed th....

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....upon the facts and circumstances of each case. Generally speaking, the decision on that question depends on the inference to be drawn from the facts found by the Tribunal. All that we have to see is whether the inference drawn by the Tribunal on the facts found by it is a reasonable inference. As seen earlier, one of the circumstances on which the Tribunal mainly relied is that those shares wer....

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....ice of those shares was Rs. 50 per share in the year 1950, yet the assessee purchased 100 shares in 1950 at Rs. 75 per share. This is again indication that the assessee was not acquiring those shares as a trading activity. We fail to see why the shares of M/s. Karam Chand Thapar and Sons should have gone down in value in the years 1952-53, 1953-54 and 1954-55 when that company was making substanti....