1979 (2) TMI 59

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....ber 9, 1968, a party with whom the assessee had,entered into a contract for forward delivery of shares wanted the contracts to be closed either by payment of difference or by actual delivery of shares. The assessee, therefore, borrowed 300 shares of Morarjee Gokuldas Spinning and Weaving Mills from one Smt. Savitridevi Gopalka and delivered them to the said party. The assessee-firm then purchased 530 shares, out of which 200 shares were returned to the said Savitridevi and the balance of 330 shares were sold in the market. In this transaction, the assessee made a profit of Rs. 38, 101 and after deducting the bank charges of Rs. 41 the net profit came to Rs. 38,060 on the purchase and sale of shares. In the same year, the assessee had incurr....

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....ore us a statement relating to purchases and sales of Morarjee Gokuldas Spinning and Mills' shares and he attempted to point out that out of 530 shares, 200 shares were returned to Smt. Savitridevi on March 25, 1963, and the remaining 100 shares, though originally purchased in the name of the assessee, were transferred in the name of Savitridevi but in effect that was intended to share up the loan transaction in which 300 shares were earlier taken on loan by the assessee. Thus, it was sought to be contended before us, that out of the profit from the sale of 330 shares the profit from the transfer of 100 shares in favour of Savitri devi at least should have been treated as profit from a speculative transaction since the transfer of these 100....