1966 (1) TMI 10

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....t the instance of the Commissioner of Income-tax, Bihar and Orissa, is whether, on the facts and in the circumstances of the case, the loss of Rs. 1,24,668 arising on the sale of shares was an admissible deduction as a loss arising in the course of the assessee's business of dealing in shares. The relative assessment year is 1953-54. It is now not disputed that the assessee also carries on busines....

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....cquisition of these shares of those companies was with a view to gain or retain a controlling interest of those companies was wrong. It also found that the assessee's shares were not sold at a price lower than the ruling market price. On these conclusions, the Tribunal was of the opinion that the loss sustained by the assessee was in the regular course of business of dealing in shares and there wa....

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....ot with a view to controlling the management of the companies or to gaining an advantage of enduring character, the assessee had purchased these shares, it would be difficult to assume that the loss ultimately incurred by him when he disposed them of not at a price lower than the ruling market price was not in the ordinary course of his business. Learned counsel referred us to the Appellate Assist....

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....es, it is argued, was in favour of the companies in which the assessee is greatly interested and has, in association with the members of his family and relations, controlling power. The transfer of these shares to those companies has not yielded any benefit to the assessee more than what he had before. There is no prohibition in law against such transactions between associate companies. The import....