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1956 (5) TMI 3 - SC - Income TaxWhether the loss of ₹ 55,030 suffered by the appellant in this transaction was a capital loss or was a trading loss or a bad debt incurred by the appellant in the course of carrying on his business of timber? Held that:- The old pronotes jointly executed by the appellant and others, which were submitted before the Appellate Assistant Commissioner did not carry the case of the appellant far enough and stopped short of proving the custom alleged by the appellant in its entirety. The transaction in question could not, therefore, be deemed to be one entered into by the appellant in the course of or in carrying on his timber business. Procuring finances for his timber business would no doubt be an essential operation in the course of his carrying on his business, but the same thing could not be predicated of this transaction of his joining Mamraj Rambhagat as surety for procuring ₹ 1 lakh from the Imperial Bank of India, which was wholly to finance Mamraj Rambhagat's business and not the timber business of the appellant. Appeal dismissed.
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