1990 (8) TMI 109

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....DY C. J.-Under section 256(2) of Income-tax Act, 1961, the Tribunal has referred the following questions for the assessment year 1969-70 : "(1) Whether, on the facts and in the circumstances of the case, was the Tribunal right in allowing the full amount of loss or any part thereof on the sale of securities by the assessee ? (2) Whether, on the facts and in the circumstances of the case, was....

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....s theTribunal justified in treating the loss on sale of U. P. Development Loan as a business loss ? 5. Whether, on the given facts and circumstances of the case, was the Tribunal justified in admitting the claim of the assessee that a partial partition among the members of the Hindu undivided family had taken place ? It would be seen that the two questions referred for the assessment year 19....

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....was dismissed by the Tribunal. The assessee's case was that though it is not engaged in dealing in Government securities, it was obliged to purchase them with a view to satisfy the Government officials with whom they have to deal every day in connection with their business. In short, their argument is that the said securities were purchased as a matter of business expediency. It is brought to o....

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....Though the order of the Appellate Assistant Commissioner in this case does not expressly record any finding, it is clear that it approved that reasoning in the appeal for the preceding assessment year, namely, 1966-67. The Appellate Assistant Commissioner clearly held that the loss was incidental to the appellant's business. In short, he accepted the appellant's case. If so, the ratio of the judgm....