1987 (10) TMI 37

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....ue, the Income-tax Appellate Tribunal has referred the following question for our opinion: " Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in holding that the loss of Rs. 11,839 on the sale of U.P. State Development Bonds was allowable under sections 28 and 29 of the Income-tax Act, 1961 ? " The facts, briefly, are that the opposite party had pu....

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....usiness and hence the loss on their transfer is a business loss is a finding of fact and that cannot be disturbed by us in advisory jurisdiction. On similar facts, in Patnaik & Co. Ltd. v. CIT [1986] 161 ITR 365, the Supreme Court held that the loss on sale of such bonds was a revenue loss. Following the said authority, we hold that the opposite party is entitled to claim deduction of Rs. 11,83....