1965 (9) TMI 5

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.... on the facts and in the circumstances of the case, the loss of 21,819 dollars on the sale of shares was a business loss deductible under section 10 of the Income-tax Act for the assessment year 1958-59?" The assessee is a firm of partnership owning rubber gardens and other properties in Malaya, and deriving income from them. For the assessment year 1958-59, the assessee claimed deduction of a ....

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....and therefore the loss resulting from the sale of the shares should be regarded as a capital loss. This view was maintained in further appeals of the assessee. The Tribunal's order on this matter is cryptic and reads: " The assessee is a money-lender, carrying on business in immovable properties too. It does not thereby mean as argued that the shares in question had been purchased as one of ....

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....the shares formed part of the stock-in-trade of the money-lending business. Nor can it be said that the fact that the shares were shown as an asset in the books of the money-lending business, invested the shares with the character of stock-in-trade of that business. It is possible that though a person does not carry on business in stocks and shares, purchase of shares may yet be part of the stock-....