1978 (11) TMI 57

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....d company. It carries on business of manufacture and sale of sugar. For the assessment year 1965-66, it claimed a deduction of Rs. 16,181 and for the assessment year 1966-67 a sum of Rs. 3,017 on the ground that these sums represented loss suffered by the assessee in selling some of its securities. The ITO disallowed the claim on the finding that the securities were an investment and were not part....

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....utilising these securities for pledging them with the bank against the assessee's overdraft account. They constituted trading assets. This plea did not find favour with the revenue authorities. They repelled it. It was not the assessee's case that it purchased these securities with the sole object of utilising them as its trading assets. The circumstances under which the assessee sold some of the ....